Now you've heard two different alloy specs.
Let me clear up THAT confusion.
The standard spec alloy used on M16/AR forgings is 7075, heat treated to the T6 condition.
As all of the AR manufacturers use raw forgings that come from a limited number of manufacturers, and all of them supply to military contractors from time to time, you can be fairly sure that any forged receiver (upper or lower) will be 7075.
Use a 4000 series rod when welding it, if you don't have a piece of 7075 lying around. It works fine. (This, I know. I milled out two lowers from raw Alcoa forgings and had to have some corrective welding done to repair my goofs. The receiver (the one I didn't scrap) fits and functions as well as my Bushmaster.
The idea of boring out the damaged area and inserting a sleeve actually sounds pretty good, too, if you're really concerned about the heat treatment.
You may be able to use the opportunity to fine-tune the location of the detent hole so that the buffer makes light but solid contact with the back of the bolt carrier yet doesn't interfere with closing the weapon, too.
The detent should be angled six degrees off vertical, toward the front.
If you have to clean up the buffer threads, Brownell's sells the tap. It won't do much damage to the anodizing on the buffer threads, I think.
CJ