My pan spent a winter sitting on the floor of the garage and ended up with rust holes and damaged threads in the drain also. I used JB Weld on the threads and tapped the correct threads and they have held for 3 years now. I'll admit that I am pretty careful when I change the oil though. Also used the JD weld on the small holes with no problems so far. I wasted an entire summer trying to find a pan that was in better shape, but that was probably before I had found this awsome site. Good Luck!
Worse case, if you have a manual steering car, use a rear sump pan from any 194-250. They work with very little hammer work above the drain plug to clear the draglink. If you have PS, you must use a center sump pan.
Thanks to all who replied. I may try to re-drill the hole, first. sgtsteve, If I can make it to Tuscon, I would love to be there, but I'm still having a overheating issue even after cleaning and fixing my rad. Not sure what to do now, as the budget keeps getting smaller and smaller.