6-32 is larger than 1/8". You won't get full threads unless you add extra material first. If you want to directly thread a 1/8" shaft, you'll want #5-40 or #5-44. It's a bit specialized, but I use #5-40 on the actuating rod when building Big Gun cannons. Greatly simplifies and improves the manufacturing process, since I can just cut a simple 1/8" brass rod to length then tap each side.