How do you replace them ?? I mean are you supposed to spread the two arms and pull the plastic out. I was afraid to break the arms by spreading them. Is the correct way to drill the rivet out and pull the pin, then get a shoulder allen bolt and nylon nut to re-assemble. ??

No drilling!
Just remove the old one and mount the new one instead. The replacement part has modification to ease installation. It's difficult to explain but pretty straight forward when you see the part.

They're a PITA to get out. But the metal doesn't bent. Do whatever you have to to the plastic, but leave the metal alone.

Also, before you put it back in the car, I've noticed that the new ones tend to hang up on a small lip halfway up. Take a file to the plastic in that area before you install it. If you take a picture of the door handle, I'll put an arrow to what I'm talking about.

Ahhh geez, I jumped the gun on one and drilled it out, now waiting on some shoulder bolts to replace it.

I was going to re-use an old plastic cam. Am I asking to do it twice or not be cheap and buy a new replacement now ?? My door latch has just been recently cleaned and lubed though.