Hello Ghostbear,
I had the same problem on my LT-40 as well. However in my case the damage to the aileron from the torque rod was much less than on your plane. What MinnFlyer posted is very good advice. If the area where the torque rod is attached to the aileron is very badly damaged, it may be worth the effort to replace the aileron. One of my flying buddies warned me about the problem that could arise with the torque rods getting loose in the ailerons. I followed his advice and inspected the ailerons for play periodically and managed to stop the problem at the root (didn't want to mess up my beautiful first covering effort

). On my LT-40 the torque rod was slightly lifting a portion of the balsa right at the end tip of the torque rod. I could feel that through the covering and just proceeded to carefully remove/peel back the covering in that area and put fiberglass cloth in the area where the torque rod stresses the wood the most.(both ailerons got this remedy applied). Now it seems to be quite snug and tight and has worked great so far.
The method MinnFlyer suggested is probably going to give you great results and you can try to double it up with fiberglass cloth for extra insurance.
P.S: If you haven't already done so, consider adding some triangle stock to the base of the rudder. Mine came loose after about one season and was a rather easy and cheap fix.
Hope this helps.
RF