j3 and chuck1 pretty much covered it.
The KNS locking pins are great to [i]prevent [/i]wear, but if you've already got significant looseness, they are just going to pass future wear along to the other set of holes.
I've seen this happen on a lot of M16s. Repair possibilities are:
--Have the holes welded up and redrilled. Expensive, and no C2 smiths I know are doing it anymore because it's too easy to screw up when welding aluminum.
--Have the holes redrilled and bronze bushings inserted. This would be my favorite solution, and most any smith can do it. It allows you to retain your present fire-control components.
--Have the holes drilled to the larger Colt oversize and switch to Colt hammer/trigger/disconnector. The Colt parts work the same, but are harder to find and more expensive than milspec. And many aftermarket triggers aren't made in that size.
HTH. And good luck!