From the parts diagram, http://www.users.globalnet.co.uk/~hadland/sa/saam.pdf for the AM, I think you are going to have a hard time making the axle fit in a 118 frame. The AW had 2 axles a 5 3/4 & 6 1/4. The 6 1/4 was used for 120 spacing. It looks like the AM only has a 5 3/4. It is a different part number than the AW axle, so I'm not sure you could replace the axle with a AW one. You could cold set your from down to 110.

What size rims are you planning on using? I'd keep the AM shell even if it was 40 holes. Part of the joy of having a AM hub is letting others know you have an AM hub and not have it disguised inside the more common AW hub. There are plenty of rims with 40 holes if you are going 700c. I've even found 40 hole 27 inch rims. Good luck