bad pilot bushing sounds likely, but I would take it for a drive first, as it could also be surface rust on the clutch.

When you get to removing the pilot bushing I like the tap and bolt method for that size. Some folks like to pack it full of grease or wet tissue paper, then with a hammer and a bar or dowel that just fits in the bushing you can drive the bushing out by driving the bar in, a very simple and crude hydraulic jack.

Grigg

•1951 GMC 250 in the Project Journals
•1948 Chevrolet 6400 - Detroit Diesel 4-53T - Roadranger 10 speed overdrive - 4 wheel disc brakes
•1952 Chevrolet 3800 pickup
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"First, get a clear notion of what you desire to accomplish, and then in all probability you will succeed in doing it..." -Henry Maudslay-