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Not sure how, but the inner thread seems to have destroyed itself, and now it won't fit properly on the bolt. It fits and sits tight if you angle it a certain way, but I am hesitant to drive with it.

My wheels have aluminum lug nuts on them, so would this be a serious hindrance to replacing this one troublesome nut with steel?

Sounds like it was fubar'ed on a previous install. Possibly cross threaded slightly, or just overtorqued. Sometimes threads just stretch too much, especially with aluminum.

Take a lug nut from another stud and make sure it threads EASILY the entire way by hand. If it doesnt the thread on the stud is messed up as well. One of two options if so, depending on how badly messed up it is. Option A, if its only slightly pissed off, just use a tap/die set to fix up the threads. Option B, if the stud is totally fubar'ed as well, is that youll have to replace it. On most cars this is relatively painless- And fairly cheap as well. There are always exceptions to this however.

If another lug nut DOES thread on it easily, and its NOT fubar at all- Just get a new lugnut. Bobs your fathers brother.

Honestly you probably could have diagnosed the cause and fixed it in the time it took you to write this post.

1. try another lug nut on the stud in question.

if it goes on, buy a new lug nut.

2. if it doesn't go on, use a thread cleaner to clean the threads of the lug nut.

3. if this doesn't fix it, use a tap (which is more aggressive than a thread cleaner).

4. if this doesn't work, replace the stud.

if you're going to replace the studs I'd just go ahead and get both sides done with extended studs, that way you have more room to play with spacers (helps with wheel/tire fitment and suspension tuning).

This depends on the lug nuts used, however. A capped lug nut may bottom out on an extended stud before the wheel is tight. Best policy if you're doing that is to use an open nut.

Yes, you should always use open nuts, if only because they're lighter. If not pretty anodized racing nuts.

Completely agreed. However, if he's got stockers on there they may be capped. Just wanted to make sure he was aware.