Well, first I'd like to thank everyone for their input. Roger and EB had some really good advice as usual. I started to go at it with the tap and since the one I had was not tapered I was going slowly. So after a few minutes with not much luck I started looking at it more closely. Turns out that I had nearly drilled out the entire bolt as you can see from the pics. There was a little pice of the bolt sticking out the backside that I was able to get a screwdriver on so I started whacking away. I managed to knock out what was left. The threads remained virtually intact. I ran the tap through it anyway and all is good. Here are a couple more pics. The first is the piece of bolt that was left and the second is the finished product before reassembly. BTW there were eight little zip ties holding the caliper up.

and

Now I can hit the beach tomorrow <img src="/forums/images/graemlins/kewl.gif" alt="" />