Got the rusty hubs soaked in pine Sol, then in the molasses bath. Forgot to take "after" pics because I got a little excited LOL!
Got the 2X2 welded to the frame:
The hubs were a little sad. Bearings were toast; there were also some grease particles in all the sand.
After welding and drilling, the axle carriage now sits an inch higher and the axle centerline is 7" further back. It no longer scrapes coming up the driveway.
And finally, Fred. Bought it for our youngest when he was a sophomore in high school, but he wanted my Nissan so a swap was made. And two grandkids later, I still have it! But with manual everything, it's not gonna be my tow vehicle.