Ok I butchered a drop, oh well. Guilty as charged. The frame was curb salvaged anyway . It runs well enough with the bolt-on hanger that it's not killing me, and its a rain bike for the most part. I might try another derailleur first, I have extras. The bolt-on hanger's alignment looks real good.
I'll check out the shop in Providence, thanks for that link. I remember later reading about some sort of insert but never saw a pic of that , definitely will keep that in mind next time. Wonder if I could have widened the hole myself and JB welded that in there. Hmm. Thanks guys, learning moment here.