I recently finished an installation using this method. I obtained my inserts at a hobby shop, and the bolts at the local hardware store. I settled on 4-40 because that is small enough that the hole in the pickup can be enlarged enough to let the bolt slide easily for adjustment, but smaller than the standard pickup hardware. This would allow the pickups to be utilized in another guitar down the road without any problems.
The instructions on the inserts suggested a few drops of glue , which I complied with. The 4-40 size did not have a grove or provision for a hex tool. In light of this, I used a 4-40 screw slightly longer than the insert, and applied petroleum jelly to the protruding section of the machine screw to prevent glue from getting in the threads. Of course, use a drill press for the holes to be sure they are square, and to limit the plunge depth.
My guitar had the .780 MOD, and thus has the pickups a little lower than standard. I was concerned about the springs being stout enough, and had several available. The standard springs seemed to work pretty well, and they are very close to fully compressed. I started with a spring within a spring, but there was too much tension when close to the bottom of the cavity. Springs made for Delta faucets are roughly the right height, fit outside of the springs that probably came with your pickups, and are easily sourced. I was prepared to use foam in addition to the springs, but have not found it to be necessary. I chose screws made with a countersunk head that was smaller than the pickup hole at the base, but larger at the top. This has the effect of centering the pickup hole on the bolt, and limiting any lateral movement.
I would use this method again without hesitation.