(ET) Got the wheel off, no diff

[Christopher Zach <cz alembic crystel com>]

Well, tonight I decided it was time to replace the steering shaft.

Tried using a pipe wrench+twist, wound up galling the shaft. No luck.

Took the massive drill and started drilling out the shaft through the 
wheel. Went all the way down to the bottom of the wheel. Was able to 
bend the shaft, but not break the wheel free.

Time to get serious. Used my large wrecking bar+pipe wrench+locking 
pliers. Finally got it to turn and got wheel off. Put new axle in, still 
skips.

Something is really weird. The washers at the bottom are pressed right 
against the backing plate; what the heck else could be causing it to 
skip? Is the sector gear shot; should I replace that? Or is there 
another way to adjust that gear to get it to mesh closer?

Chris