There is a spacer in there that you have to slide over. I bought a then steel rod from Ace and cut it down to about 12 inches or so. If you put that rod in there and get it to the other end of the space then you should be able to pull against the side of the top bearing, applying leverage to the spacer and slide in out of the way....a little. You don't get much room until you get the bearing to move and then things loosen up a little. If it's like mine, you will have to pull pretty hard but you should feel it slide over. Then get your steel rod on the exposed lip of the bearing and beat on it with a nice big hammer. It might take a while to crack loose but once it does you should switch sides and kinda walk it out. The other one is a piece of cake because the spacer will come out of the hub and you'll have unobstructed access to the other bearing.
BTW...I have the same bike and just did this for the first time last fall. Also, you should have drilled bigger and deeper, you could have saved those threads.
Don't you hate it when you get hand cramps from torquing your tool too hard?
Either from torquing my tool or pulling my rod for leverage.......both are kinda fun in a lonely kinda way.....

Or maybe drilling deeper and longer is more fun in a not-so-lonely kinda way.....
