Yup- That's a tight one and not much metal to play with. I'm not sure what tools and setup you have available (mills, solid quill drill presses, hand held power drills, etc.) but your setup and jig will be the most important aspects. Sounds like you have two good sets of threads in two cylinders to work off when setting up your jig. Did you thread up a straight rod that screws into the good holes and line up your jig to it? Use that same rod to shim the head on the table so it's square to the quill (if you got one)? I'm kinda lucky I have full access to not just all the right tools but also my dad was a master machinist (tool and die maker actually) and gave me lots of lessons in our home shop. Let me know you want to bounce off any ideas...or just need moral support to hit the 'on' button on a drill! Sometimes that's the hardest part!