| Over here in Australia, i have often read in magazines, where a
| tool called a daddo is used with wood. It looks like a router
| blade, is this right. Is there another name for this tool.
If it's intended for use with a router, then it's commonly called a
"straight router bit".
If it's intended for use with a table or radial arm saw, then it's
commonly called a "dado blade" or "dado blade set" (depending on
DeSoto, Iowa USA
Perhaps you mean the old fashioned hand router?
http://www.lie-nielsen.com/catalog.php?sku '1 Small
It could (perhaps?) be used for dados as well. But I don't see how to
guide it precisely.
Here's an old one (patent in 1884) on eBay:
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