If it were me, I would send it to M60joe. I trust him most of the smiths now doing this work.
On how best to fix it:
--First, see if there is any chance he can just drill out the hammer-pin hole (and the hammer itself) to 0.170", the Colt commercial AR spec. That is the least "intrusive" way of handling it -- yes, you would have two pin sizes, but no one would notice.
--Next, if the hole is too enlarged to go to .170, I would use a bushing. The downside is that they are obvious (though the KNS locking pins, ahem, would cover the bushings). See the photos here:
www.uzitalk.com/forums/showthread.php?t=19151The advantages to bushings over welding up and redrilling: Well, you do not need to refinish the entire receiver, and preserving the original finish on a Colt is important for resale. More important, your receiver will be stronger: Colt used forged receivers because the tremendous pressure of the forging process lierally realigns the "grain" of the metal, increasing its strength. It is physically impossible to weld metal to the same strength, so the welded area will always be inherently weaker. In addition, you lose the anodized coating in the welded area.
--Rewelding and redrilling is a last-ditch approach. I'd then have entire receiver reanodized. This is best left for really trashed receivers, because no matter how nicely done, I've never seen a reanodize job that could pass for Colt's original. (In fact, the giveaway to a quality reanodizing like US Anodizing's work is that it's
too nice to be Colt original.)
In any and all cases, if the rear trigger-pin hole is not damaged, I would not mess with it.
HTH.