aka Tom Reingold
Join Date: Jan 2009
Location: New York, NY, and High Falls, NY, USA
Posts: 40,591
Bikes: 1962 Rudge Sports, 1971 Raleigh Super Course, 1971 Raleigh Pro Track, 1974 Raleigh International, 1975 Viscount Fixie, 1982 McLean, 1996 Lemond (Ti), 2002 Burley Zydeco tandem
Mentioned: 513 Post(s)
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I would get rid of all the rust on the internal parts of a geared hub. If you do that, there's no guaranty that it will work, but leaving some rust on reduces the chances further.
I once opened up an old hub and found the lubricant had turned to varnish and had hardened on the surfaces. It took a lot of scratching to get it off. In the end, the hub worked well.