This thread is a good example of the knowledge and experience that can be found on this forum. It's comforting. 

Probably better to save the wet arms.  I have since been offered a set of dry ones, thanks for the help.

I've used the drill it out and mount the shock with a bolt method before. Handy with Konis.

Minor issues to keep in mind with the wet arms: mounting position and lengths of the rear brake hose and the pipe to wheel cylinders.

Yes you can convert. The spring rate is different and like you mentioned the axle stub should be replaced with a dry one. It presses from the large nut side out the inside. You could chuck it up in a lathe drill and tap for 3/8 fine and press it back in and mount the bottom of the shock with a bolt. If you do buy new dry stubs use a old piston pin to press the new ones in place. If you press on the 3/8 shock stud it will bend over. Then you can cut it off and try the drill and tap route. Hi Lows are a good idea. Steve (CTR)

The angle of the Knuckle joint mount is different so you would have to add HI/Los to the mix .....

Mousy

Can I rebuild 'wet' trailing arms to use with dry suspension?  I have to rebuild them all the bearings are bad.  Looks like I will have to remove the shaft that holds the wheel bearings and replace it with the shaft that I can mount the shock to.  Is that all I have to change?  also how do I remove that shaft, I see what looks like a clip in the outboard side