After two day of messing with it I finally got both drums off the rear. Woot! The axle is totally fine and this baby rolls. I also had a used tire thrown on as the one was totally destroyed.
I also got the stuck valve more-or-less freed up. It opens and closes on its own now but seems to only open about 90%, but you can pry it up the rest of the way with a screwdriver. I figure if I go back and forth on it a while every day it will hopefully be good to go. I also think that if I get a battery in it and keep turning it over with the starter that consistent opening and closing will possibly get it to free up the rest of the way.
Things are coming along good! I am starting on a carb cleaning now (I will eventually fully rebuilt it).
Dan