If it's only one door then just use an 1-1/4 chisle.
For the hole there's a neat cheap whole set sold at Home Depot or Lowes that can be adjust for two differant offsets and comes with the hole saws for the knob and the latch for around $20.00. http://hardware.hardwarestore.com/29...it-282038.aspx
Make sure to use 3 hindges not two,
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