wheel stud problem...

Well its only a 3/8ths spacer.. its just to get the wheel off my drum

If it is just a 3/8" spacer, what are you needing such long studs? As far as under size stud knurls, that is something I would never do. I bought a car where the studs were done with an impact and they broke two of them loose at the knurl point. It took a cutting torch which ended up ruining a wheel to get the rear wheel off.