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somekevinguy,
I assume you are trying to drill the holes from the outside of the frame towards the center.
Have you tried mocking up the 'z-bracket' with a bolt and some washers in the original hole, working on the inside of the frame and drilling towards the outside? This may give you more room to work, although you may have to move some wiring/brake lines/fuel lines/etc. out of the way (but this will also allow you to miss those items when drilling, thereby avoiding damage to them).
You may not need not have the brackets perfectly vertical either, they are just there to add some stiffening to the sway bar links.
Lane
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