Since the bearings and races looked pretty good, and after
@RobinHood post, I decided to just clean, lube and reinstall the spindle. I decided to just use grease, Shell Gadus S2 V100-2 (NLGI 2, Lithium grease, 100cSt viscosity).
I slowly tightened the preload nut until the spindle would not rotate, and then backed it off a smidgen. The spindle turned freely with resistance - due to the grease. I then went to install the motor pulley, but it didn't have a key slot. It had the set screw bite into the key way of the old motor. This won't do. And since I don't have broaches, or a shaper, or a slotting attachment, I went old school. I put the pulley in the milling machine, and used a boring bar with a 3/16" hss bit I ground. Indicated center, put a band clamp around the mill spindle and column to prevent rotation, and using the quill for the stroke, took 0.005" passes until I got to the proper depth. The pulley is aluminium so it went quickly.