The studs do not need to thread into the full depth of the block. The studs will be engineered with adequate thread length to do the job. The key is to have adequate engagement of threads in the block and full engagement of the nut. Guidelines on thread depth can be found here:
http://www.ford-y-block.com/assemblyerrors.htmContact Canton but I think a thread that size would use red loctite. You have to apply heat, to soften the loctite for future removal
Also contact Canton about the torque spec. Always use the manufacturers specification and instructions as it can vary from one manufacturer to another and even from one product line to another within the same manufacturer.
I used the windage studs out of a set of ARP main studs for small block Mopar, 318, 340, etc. They are a little longer than necessary, through the main cap but just barely short enough that they do work in 292 and smaller engines. 312 will probably be fine.
Here's a link to a previous thread on the subject of windage tray installation.
http://forums.y-blocksforever.com/Topic149206.aspx
Lawrenceville, GA