My reccomendation to you, is don't worry about the material, so much as the method.
Free-hand drilling and tapping sucks, period. Use a drill press and drill press vise if you can. This will keep your drill/tap straight and square to the workpiece, as well as keep the workpiece steady. For tapping, especially with smaller taps, unplug the drill press, mount the tap in the chuck, and turn the chuck by hand. Don't stress too much about what kind of steel, drill, tap, or lube to use. If you can get it at the hardware store it will be ok. For lube, old motor oil should be fine, honestly. (If it's a pretty gun, you might want to use new motor oil.
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Check around your nearby community colleges to see ic there are any beginner's machine tool classes. Regardless of the age/occupation, you should enjoy the class.
And for the record, yes I am a machinist by trade, so that's my two cents...