Well, I was looking for ideas...thank you all!
I don't like using JB Weld (but I keep it handy anyway). For the number of times I've had this distributor in and out, I'll prefer a solution that will survive many more repetitions.
I like the idea of going up a size...same thread pitch if possible. However, it is just as easy to install a helicoil...and then the original screw works. If I find the right size and have all the parts handy, I'll go with the next size. If not, I'll probably go with a helicoil.
I may indeed go with teflon tape as a temporary measure until I make a permanent fix. Even though it sees very little stress, I don't want it falling out in the street. Some little kid might choke on it. ;-)
Many years ago, I had a set screw in a wallowed hole in a model airplane engine. My Dad took a scrap piece of aluminum plate a little thinner than the length of the screw, drilled a hole in the plate the next common drill size bigger than the major dia...and then laid the plate on the anvil of our big vice, dropped the set screw in the hole and whacked it twice with a big hammer. That swelled up the set screw enough for it to bite...