Is it ok id my lugnuts sit against rim like this? Sorry if bad picture.
these are rh dc evos with lugnuts by buddy got me

 

Besides being difficult to tighten them on to the wheel (and not being able to mount the wheel's center plates anymore due to their length), I don't see any issues with using them.

 

just make sure the seat type is the correct form for that rim. if the lug nut seat type is diffrent, the lugs can tear up the rims

 

+1

Looks like the wheels were redrilled, so the machining on the lug opening will be the area of concern. You may want to recheck the torque every so often to make sure that everything is sitting nice and square on the wheel