I know this is discussed elsewhere, even in the stickies, but I still cannot find an answer to my question so here it goes.

The snow sucks here this winter, and we are in some kind of limbo land between what is acceptable for skiing, and borderline biking conditions on forest roads and such. So, yesterday I went for a bike, and it was nice except that the roads and trails are icy and make going downhill a recipe for breaking stuff. I am not sure if I want to shell out for studded tires, or just try to make my own.
I have read how to do it with screws and an extra tire liner and all of that, but I am wondering if it is possible to use this studding kit Anyone ever tried making studded tires with this before? Is it even possible with non-studded tires?

It is for replacing studs on a studded tire. Where a do you pedal? Studded tires will last for at least 5 years or so. They work great. Better than bustin yer face or waking up with a 3 color bruise.

it won't work without a lot of effort because proper studs have a lip that holds it in the tire. The hole is easy, but the indents for the lips can be very hard to make.

Why would you want to do that? $29.99 for 20 studs and the tool + $25 for a cheap tire = 54.99 and you still only have 20 studs.
Do some searching and you can easily find good Nokian studded tires for less than what you want to do. It will be a better ice tire with more studs.
Innova Tires
Nokian Tires

Studded tires have to be one of the wisest investments I've made in my life. A good set will last for years, allow you to ride all winter, work better than anything you can build, and keep you from hurting yourself. Buy some good ones. I prefer Nokian Mount and Grounds.

My DIY studded tyres probably have about 2 seasons life where we have 2-3 week freezups.
If this is all you need, then self-tapping, panhead screws are sufficient and their grip on ice just as good.