I bought the ancorn style Bulge lug nut, it that the correct nut for torq thrust II's?

Yes

I have heard that when changing from steel wheels to the TTII's that you need to also change the wheel studs to longer ones. Anyone have any comment on that? :confused:

I put on 17" TTII's in place of steel rally's with no wheel stud modification.

I already changed my rear studs, they would have been too short. I put disc brakes on the front, the studs were plenty long. I called American Racing Wheel today and she offered up about 3 different types of nut for TTIIs. I wonder if there is a style that would have a washer or collar to fill the recess around the lug nut hole? Anybody have any closeup pictures of there ttii2 lug nuts?