Thanks for all the help and support guys. Super awesome!
Here's an update:
String test revealed a good frame. I went ahead and tried something like fietsbob's idea for checking my dropouts and those seems to be in good order. After reading FBinNY's post though, I think I'll do one last check. Thanks to the both of you for that tip though. Saves me $80. I'll probably get that tool someday though, for as fietsbob said "advantage to the shop tool is it's robust, and serves as the leverage to bend the dropouts itself." Fortunately, I don't have to worry about that, so it seems. Even if they were out of whack, considering it's an aluminum frame, I probably would've been SOL as fietsbob stated.
To answer gyozadude's question, yes I am sure I have a freewheel and not a cassette. Fortunately, I do know the difference between those two. Thanks for asking though. I have found though, that far too many websites use freewheel and cassette interchangeably adding to the chaos!
Although, now that I'm thinking about it, I'm not sure that the wheel set are the original ones that came with the bike, which could explain the small axle. I'll check that the teeth match up to the site, but I know I have a freewheel for sure. In which case, I attribute the confusion to what I said earlier.
Thanks for your contribution Charles. That picture is awesome. Thanks for your tip on solid axles. I think I like QRs too much though. I'll definitely keep it in mind for future projects.
Now, I did find the right axle I need online and was ready to order it, but I remember I have a bike sitting around that could have the axle I need. To my luck, it did! It's a bike a use to ride and am in the process of taking any good parts off it and throwing away the frame. Anyway, I was able to salvage some bearings, a cassette with freehub, cones, locknuts, and the magical axle I need! As I was putting in the new axle, I found out I need more spacers! Boo! I guess these weren't the original hubs that go on this bike. It's like I said in my OP, if the axle was too small to begin with, the hubs probably are too. No big deal, I just need spacers. I checked a couple shops today in my immediate area, no one had the spacers I need. I wanted to get one spacer for each side (a 10mm and 20mm), but according to the last shop I went to, those are rare now. The first shop I went to only carried 1mm, and I opted out of those.
Is is better to have one spacer as opposed to several to fill a space?
I'm guessing yes, but probably isn't that big of deal in the end. Alas, The shop I'm going to tomorrow carries 5mm, and I'll have to go with that since no one carries 10s or 20s, and it doesn't seem worth it to order that small part. Currently, I have a 15mm and a 5mm in there, so a 5mm on each side isn't bad I guess. Better than a bunch of 1mm!
I'll just have to look around to when I find those spacers.
So, hopefully, once I get the spacers tomorrow, I'll just pop those puppies in there, but the freewheel back on and I should be good to ride! Yes!
Thanks again everyone for your help. I'll post another update tomorrow...
Hey fietsbob, do you have a link to the wheels of boulder?
Thanks oldbobcat for your contribution.
Happy riding everyone...