Hi Mani,
Mustangs are fine a/c; I've flown several & actually had a kit for about a decade, but it wasn't a 'building decade'. Finally sold it to keep it from corroding away, & later started my -7.
One thing you might experiment with is to try 'pre-squeezing' some longer 4s to make them swell up a bit prior to inserting them in the holes. It's a bit tougher to do that with universal head rivets, but not impossible. If your drill job is done even 'fairly' well, you might find that you don't even need bigger rivets. Have you seen the instructions floating around the 'net on how to drill them without oversizing the hole? You can get a centering tool that will start the bit in the center of the head (assuming an undamaged shop head) and drill with a 3/32 bit until you're 1/2-3/4 through (this releases most of the spreading force in the hole), then use a larger bit to drill off the head. A 3/32 punch can then be used to punch out the remaining shaft/shop head.
If you have poorly formed heads, you can 'shave' them off flush with a rivet shaver tool, then it's easy to see the shaft. Drill with a 3/32 as above and punch it out.
FWIW,
Charlie
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