So I bought a thread repair file and was able to open up the crushed thread on the ends of the axle. Then I was able to back out the nuts using my fingers with slight resistance.
Repacked the hub with new balls and it's good as new. I'm surprised it was spinning so rough before I thought the race was damaged.
Off topic, the crankset is BSA, is the thread for the pedals standard? I want to use my clipless pedals instead of toe clips.
Thanks everyone for the help.
