Common problem on the old shovels. I would consider a time-sert
http://www.timesert.com/
You could also use a heli coil or keen sert but I prefer the time-sert.
After fixing the threads you can install a stud and use nuts to hold the exhaust on, that way you never have to remove them and risk additional damage to the head. Someone makes a kit for that I believe. You can do it all on the bike, becareful, take your time and do it right and it will last. Always good to test it on some old metal first if you have never done one before to get the hang of it.