welldigger
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I can't even begin to imagine the nightmare of trying to cut through a hardened bearing race with a dremel tool. Your either gonna have to yank it off with a puller or cut the bearing with a plasma cutter or torch.If I was in your place I'd try to cut the bearing race in one spot (the one stuck on the spindle). Once you have cut a groove through as much of it as you can then stick a chisle in the cut area to break/spread it to get it off. Obviously there isnt room to get any cuttoff wheel in there but (again if it was me) I'd buy a few packs of small diameter dremel grinding bits (coarse aluminum oxide ones for metal) and try grinding a notch through 1 part of that stuck spindle bearing race. I'm sure this would work, but you may go through a few packs of bits. Mcmaster.com usually sells quality stuff and a pack of 5 bits with 1/8" diameter grinding tips is about $4, so even if you go through 20 bits, you still only have $20 bucks into it.
You might want to make sure you get half decent grinding bits if you go this route, the ones from the Home improvment stores wont hold up as well as the quality ones.