If you know what you're doing or take the tank to an experienced person to do the drilling it's a really good idea. It allows you to plumb without having to use overflow boxes with siphon issues, and keep the "in tank" parts to a minimum.
If you don't know what you're doing it's a really bad idea.
Do some Googling for methods that work and make sure the tank isn't tempered glass. Or take it to a glass shop.
How close to the top can I drill the hole? I want to drill as close to the top as possible to keep the water line higher, but I guess I could build a small box around the hole for that problem.
Im doing this to set up a sump under my tank. What Im thinking is putting a pump down in the sump to pump water back up to the tank. Thus the water in the sump would lower with evaporation and the tank would stay the same level, only regulated by the overflow line. Does this sound right?
Is the overflow of water down to the sump going to be loud?
edit: I changed names, time to move away from the old name.
I would not drill the hole closer than 4 inches to either side. Use a bulkhead fitting in the hole to plumb in a tube that runs up to the surface, and then put slashes in the top of the tube, and a tube covering to prevent fish and inverts from going over. You can also drill a skimmer box and use it instead of a tubing.