Date: 2/21/2009 5:04 pm EDT
Doug this one will be a little tricky. If you are a pefectionist diamond hole saws (coring saws) are available in various sizes of course and they would be your best bet. However, finding one will likely take some time. There is a small possibility you could locate the hole and mark it on your tile, then take the tile to a plumber or a tileguy that could cut the hole for you. You may also find a tool rental company that would have a small diamond hole saw but usually the ones they have are much bigger.
None of the other so-called tile hole saws will cut the Avaire tile because it is a quality grade of porcelain.
The next best thing may be for you to simply make two cuts into the tile from the edge and about one inch apart. Break away the inner piece then cut an inch off of the broken end. You would then glue that small piece back in place after installing the larger portion of the tile.
Those type of cuts don't often show because they are usually out of the way anyway. You will also likely be covering the cut with an escutcheon to further hide the cut.