This forum is a great resource for researching how to remove difficult parts from a 36 year old bike. There are plenty of posts on how to remove stubborn steering races to replace them with tapered bearings. I tried the cutting with a Dremel method and split it with a flat screw driver method. Also the pound it out with a chunk of broom handle method.
http://forums.sohc4.net/index.php?topic=48295.0 I wanted to share with you all what worked for me, I'm calling it "knock it out with the old shock" method:
First, use the old 33mm front shock, I'm replacing the stock cb350f front setup with one from a 76 cb550 (35mm shocks - to big for this method).
Second, shoot some PB Blaster down the neck at the race and at the race directly. Just so it slides easily and minimizes any damage to the interior of the neck.
Third, gently insert the top of the old shock into the top of the steering neck until it stops at the top of the race, you might want to lightly grease the top of the shock that goes into the neck.
Fourth, stabilize the frame, grab the end of the shock and knock the top of the shock against the race. If you are holding it right, it acts just like a impact wrench since the shock absorbs the recoil into your arms.
Bingo! your race should fly out after a couple of good knocks.
You'll noticed the race is almost out - I had to take pictures when I noticed this was working so I could post it here!