Nice!!
Shark-jumping ahead..
Depending on the radial runout in the existing axles/bushings, and lateral runout of your hub flange.. Could you not just build a tool fixture onto your existing wheel hub and have the thing 'turn itself'? Or at least be located by and spin within the bushing after the axle is removed? Might be easier than making the whole housing spin or fitting it upright underneath some rotating-toolhead thing. I am no machinist so im not very familiar with tooling for 'spinning around the outside of a stationary round piece' but that's the first place my brain goes. Think of a less-crappy version of a brake drum thats been modified with an adjustable bit holder stuck through the side of it to cut the axle tube od. I assume the surface doesnt have to end up THAT nice, as long as it's concentric to the axle and of correct OD.
That's precisely the lines along which I'm thinking. The trick will be getting it to turn a cylinder, not a cone. And I've been pondering it for a a couple days, and here's what I've settled on:
I don't think I'll be able, without spending hours and hours, but make something that will be adjustable to cleanly turn a true cylinder. It's going to want to turn a cone, because if the sliding head that's mounted to the wheel hub is at all out of square, either in the "in/out" sense, or in the "forward/backward" sense, then it will turn a cone as you move the cutting head across the width of the axle OD.
To deal with that reality, I think I'll just have to make up for it with slow, methodical, step by step machining. I'll have to turn these journals one "groove" at a time. I'll mount up a flat/square 1/8" cutting tool, like a parting tool, and working from the innermost side, turn one clean "groove" at a time. The only thing it requires is that my ability to dial in a cut is accurate, which is to say, the abilty to turn a groove, measure it, and accurately dial in "x" additional inches deeper from that point.
So I'm thinking that I'll find a way to mount a small-ish boring head (from my small mill) as the tool holder. It won't be spinning, it'll just be the stationary tool holder, with a cutting bit sticking down to make contact with the OD. That way I can use the boring head's accurate inward/outward mechnism to dial my cutting bit deeper/shallower.
So I just have to fabricate a flange that can bolt to the wheel hub and mount to a boring head in a way that allows the boring head to slide inward and outward about 2.25" across the face I'll be machining.
Bob