We have an X-Carve altered with the DeWalt DWP611. We plan on carving detailed lettering and designs into birch wood boards, only carving 1/8" or so deep into the board. What types of router bits should we purchase? Thanks
I’d recommend starting with the collection of different types and sizes from Inventables, it has a few different sizes. I primarily use the 1/8" ball end and flat (straight flute) mills with wood, so far, but the engraving bits have made some nice small designs too.
It may not hurt to order two of the collections, just in case you break a bit due to accident or stupidity. I’ve broken a few because of both… 
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Nothing beats a 60 degree vbit for detailed lettering. But you will need software that is capable of generating vbit tool paths.
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If you’ve got the DeWalt on your machine, Id suggest the 1/4" shank 90 degree and 60 degree V Bits would be a pretty good start point. They’re both reasonably strong and will easily meet your demands, plus they’ll fit the 1/4" collet on the router (unless you’ve got a 1/8" collet as well)
Keep in mind that depending upon the software you’re using, some VCarved lettering actually has some pretty heavy cuts involved (or at that’s the case for me using VCarve Pro and my DeWalt XCarve).