Thank you Bob S .....I got a real kick out of that :)
dmac2 (Don McNeil) Machining out the pulley shouldn't prove to be much of a problem for any local machine shop.
I would consider that part almost hobby lathe size capable.
The pulley is able to be held on the inside of the rim by reversing the jaws on the lathe chuck. (You remove them, spin them 180 and re-insert them so that the stepped tier is largest on the outside and stepps down in towards the center of the chuck. This effectivly reduces the diameter you are trying to grip. If done carefully (packed with sandpaper to prevent jaw marks) and dailed up true. It is possible to do this without leaving any marks. You shouldn't have any problems with this method due to the softness of the bearing material being machined.
The bearing material sounds remarkably similar to what I have heard called "old school, white metal" and is relativly soft due to the lead content and machines very easily. Modern "white metal" no longer has the lead content due to health and saftey issues. It's a little harder but very similar otherwise.
If you get a young machinist, just tell them that "she's an old girl, treat her gently" If they go hard there is the possibility (though slight) of damaging the bond of the soft bearing material to the housing. Either pushing it through or causing it to spin in the housing at a later date.
Hope this helps.