Several years ago I had regular access to a vertical mill, so I machined up a jig and redrilled my '88 front hubs on the mill. I just went out to the shop and double checked, and I'm pretty sure I used a 31/64 (0.484 inch, 12.3 mm) drill for the final (finish) pass, and the OEM studs pressed in very nicely. I did use anti-seize to facilitate assembly.
According to the catalogs, the M12x1.5 GM wheel studs have a knurl diameter of 0.509 inch (12.9 mm), which would imply that the hole should be about half an inch (0.500 inch, 12.7 mm) in diameter. But having actually done it, I think that a half inch hole might be a little too large. Consider that the actual finished hole size usually ends up slightly larger than the nominal drill size. I guess you could always drill to 31/64 and then ream to a slightly larger final size, if desired. YMMV.
[This message has been edited by Marvin McInnis (edited 04-13-2010).]