'79 Wheel Stud Problem

I guess the easiest way to fix, is a spot weld to the stud head.
You can get 7/16-20 studs with a larger knurl. The actual knurl size will vary in size very slightly depending on brand. The higher quality studs will be much more consistant.
Summit has a good assortment of different sizes. Most auto parts stores don't keep the old inch sizes in stock anymore (few sales), but the better ones will carry the Dorman brand and should have different knurls up to .564. ARP makes a very high quality stud.
Buying replacement hubs would be an very expensive way to repair a somewhat simple problem.
When installing oversize studs, I slightly drill undersize and then ream the final hole to fit the shoulder diameter of the new stud. Almost all studs have a shoulder and use SAE standsards for knurl interference. It should automatically fall into the .005 range.
I use a Bridgeport mill with Anilam digital readout, but a decent drill press can be used. Don't do it with a hand drill or weld the head.
The damaged hole really shouldn't be used as a pilot, but since the Corvette rims are hub centric, that will allow for some error.
I've found that the poor quailty of some aftermarket lugnuts in combination with too much torque causes the nuts to fail, then leaving the remains in the stud thread roots to damage new nuts.
Old nut material as shown in the pic below can be removed by running a die over the existing studs and then cleaning them with a solvent. On many cars, especially with ones using the oem factory aluminums rims, every stud has these nut remants and they are almost impossible to see.
Indy
http://www.jegs.com/i/ARP/070/100-7701/10002/-1
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