My thoughts are that the tube is simply rusted/corroded in place. While heating the tube up probably won't hurt it (I'd be amazed if it were anything other than mild steel) you'd need a lot of heat to get that circumference to the point where the tube could be easily removed.
Instead I'd do this...soak with PB Blaster (or the like) and build up two tools, 1) a solid shaft you can insert thru what's left of the vertical spindle housing to apply torque and 2) a slide-hammer setup to apply axial pull to the stub-inner-tube. I think the slide hammer could involve a "Y" shaped chain attached to an existing slide hammer...or also something like restraining the axle to something solid and then pulling axially with a come along to something else solid. Be very careful applying any external forces as a single jack stand is not margin of backup.
As with any rusted or corroded problem, cyclic motion is usually what takes its toll. In other words if you can get the two parts to move relative to each other just a fraction of an inch you have got it...just keep working the parts back and forth until they finally come apart (this takes persistance and usually an exercise of most of your most chilling vocabulary). Think of it as rust is the lowest-grade fastener any engineer could specify...and your job is to make it fail 8-)
This post was edited by mattofvinings at 10:04:51 05/13/09.
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