weed eater -

this is a pretty good breakdown on this issue, which I posted once before, written by the author of Fixed Gear 101 (which I'm sure at least 75% of you guys have read!):

http://www.63xc.com/gregg/gregchai.htm

As for your chain tool issue, I don't know what you're talking about. The same chain tool should work on both 1/8 and 3/32. You could avoid the whole chain tool issue anyway by getting a chain with a master link. Most 1/8 chains for track bikes come with this to facilitate easy chain removal for the changing of cogs/rings and whatnot. Many will tell you that the master link is unsafe for street riding... that they don't trust it because it might break open while they're riding can't take the abuse of the street etc. Others will tell you that's hogwash. I remember a poster saying that the master link exploded on his SRAM chain. I don't know, that's up to you to decide.