Could someone tell me the proper way to remove the rear wheel studs. A few of mine are in bad shape and I would like to replace them. Thanks.

Put an old lug nut on it and hit it with a big hammer.
Put the new one in and stack washers under it and use a lug nut to pull it into place (an air operated impact gun works great for this, but can be done slowly with a breaker bar and socket)