Dan, I have been screwing around for 2 years now, all my knife handles are screwed on. I have yet to have a customer call me and tell me a fastener has failed.
I use female threaded standoff found here
www.mcmaster.com type in Female standoffs click on the threaded ones and then narrow your search down. I purchase the .250 in length ( 36 cents ) and use brass they are much cheaper than the SS ones and if you are a tad off in your drill hole the brass gives enough to accept the screw, the SS will strip your screw.
I drill my standoff holes slightly undersized then come back and use a precision reamer to get it to size. I hammer in the standoff it will be a tight fit then grind them flush. Should you mess up the thread you can come back from the other side and the threads will clean up or you just beat it out and put a fresh one in. If for some reason the standoff spins on you just peen a corner insuring not to damage the top threads and it will freeze it in place
For thin stock I use a depth gage to get as much thread as possible, even 2 threads thread locked in is more than enough to keep your handle solid ( I am sure some folks will have a different opinion about that but it works for me )
Once again none of my customers have had a problem with my handles failing with over 600-700 knives out there using this method thats pretty good.
I use black oxide coated button head torx in 4-40 and made a counter bore out of a drill bit the system works well. 4-40 is the smallest standoff made.
Remember you need twice the amount of screws to standoffs
This system works really well for me and i like the fact that you can take and put on the handles do shaping, finish the knife tang and if you mess one up you just redo it.
If you need any more help get my number Mr clean and give me a call
Also there is a thread in my forum
somewhere else called building the Hornet its got pics of this process.
Spencer