Oil pressure switch leak

It was suggested I replace my oil pressure switch. I cannot do so with stripped threads. Can this be tapped out (rethreaded) without doing damage to engine (metal shavings, etc.)?

Yes--I have the "dummy" lights telling me when oil pressure is low. The area I'm talking about is on TOP of the engine as soon as you open the hood, you are looking right at it. The upper radiator hose runs about 4 inches over it. It's on the intake manifold or the block--i can't remember which--- pointing straight up. The oil pressure switch on my1982 Olds 307 is about the size/shape of a spark plug. I have already tried replacing it with a new one. It did NOT work so I took it back to Autozone. Problem is the RECEIVING threads inside the engine are stripped. Yes I have been under my car many a time for many oil changes, etc. This is the only problem keeping my beloved full size wagon off the road. Ever heard of anyone using Alumalloy with a blowtorch to seal this hole off? I'm starting to think this is my only option. Thanks!