I iced the shaft for 10 min. to help shrink it. I got the pliers you mentioned above and taped them to keep from damaging the spacer 060. I can barely get a grip on it and I pulled but nothing before the pliers slip off.
I am getting the spacer 060 off right now! I went to the local Kubuta dealer and ordered my parts, then went to see the service manager. What a blessing they were as well as LA724 and all who've contributed to this thread. I told them about my dilemma and he took me to a mechanic who'd done the same job 1 week ago on a different model tractor.
He told me that I'm MUCH better off making sure the fwd propeller shaft does not come out. Instead, he told to take a flat head screw driver and push inside the seal and start prying it out, working around it as necessary. Spacer 060 is going to be trashed anyway so scratching it is no big deal. When I pried, the back side began to push out and I used a pry bar in the other hand to pull from that side. Came out in few minutes.
Then he said to use a pry bar that is ground down to a point so that it will dig into the spacer 060. I found a punch with a point and sharpened it and decided to try that. I had to dig in and pry against the case, so I made sure I pried against the thicker part to be safe against cracking. It began to SLOWLY move. I then switched to a pry bar and started working it out.
I am going to keep my knee against the shaft to make sure it doesn't come out as I finish removing the spacer.
He loaned me a sleeve (looks like a piece of pipe - it's the one that comes in the "kit" that is available) to help tap on the new 060 sleeve. He also loaned me a tool just the right size to press the new seal on when it arrives.
Will get the parts off today and am waiting on the new parts to arrive in about 3 days.
Thanks to everyone for the help so far. I'll try to add more info as I go. A few pics below of taking off the spacer and the loaner tools.