After heating that bushing/spacer with a torch for about 10-15 seconds, then let it cool, and it just about popped out on its own with a few taps from a chisel to spin it. I then measured the hub and crank opening with a digital caliber, measured 1.79" and 1.81", so I was good to go.
I then installed the engine, not realizing that the rack and pinion on the HDK set up needs to be installed first. So I pulled the motor back out for the second time today, slid the R&P in, and then came up with this:
