With good equipment, waterjetting's funneling shape can be removed. Our team used WireEDM (as Raul suggested) for our purposes.
We drove our treads this year with this custom cut gear:
http://www.chiefdelphi.com/forums/at...achmentid=1992
Which you can see on the robot:
http://www.chiefdelphi.com/forums/pi...&quiet=Verbose
We also used it for a veeery nice gear in our gearbox that I don't have a picture of at the moment. Regardless, WireEDM is the most precise way to do it. It's just painstakingly slow.