Re: Fence Post Hole Question - and pressure-treated posts.
Oh boy! I can understand your frustration! I installed a fence this summer, and digging the post holes was a royal pain. My tools consisted of a two handled posthole digger, a heavy steel digging bar, garden hose with high-pressure nozzle, and last, but not least, a pneumatic air chisel. We live in a very rocky area, with some hard-pan about 12" deep.
I start with the two-handed post hole digger and the steel bar. When I encounter a rock that I can not move, I revert to what I call Water Boring. I use a garden hose with a high-pressure hose attachment; similar to a small fire hole nozzle. Use the nozzle to wash the dirt away from all sides of the rock. This is a messy job, the hole fills up with water, so you will need to use the Braille method. The good part is, nearly all the dirt will float out of the hole. You can actually dig the entire hole with the hose and nozzle! And I used a shop vacuum to remove the water from the hole on small jobs.
The exception is hard-pan! Even the water boring grinds to a halt. The hard-pan was about 12 inches down, and looks like packed sand. Water boring works, but a garden hose does not have enough pressure. I gave up, and began to think jack-hammer and dynamite. Scrounging through my tool box, I found a 30 year old pneumatic air chisel, and this did the job. Not real fast, but it does work!
IMPORTANT NOTE ABOUT PRESSURE TREATED POSTS: I used 4x4 pressure treated post that I purchased from the local Borg; over a three week period. Over 30% (6 our of 15) of the posts twisted at the top, within 30 days! The worst case was about 30 degrees. I kick myself for not stopping to think when I noticed a few of the posts were very heavy. The post should have been stickered and cured.
Norm Abram identifies this problem:
http://www.thisoldhouse.com/toh/asktoh/question/0,,392864,00.html
Here's a link to my Cedar Fence photo album:
http://www.ncwoodworker.net/pp/showgallery.php?cat=979
-Don