1) In theory the ABS thing with the wire coming out should pull out from the inside of the knuckle-- this includes the shiny circular part that you see sticking out the out through the outside of the knuckle. In reality, I was not able to remove this part because the rusty knuckle was holding it in place, so I just left it there.
2) There is a separate part that attaches to the outside of the knuckle-- as far as I can tell, it serves to protect the part of the ABS sensor that sticks through the knuckle from mud and debris-- this part slightly overlaps the spindle and must be removed in order to remove the spindle. It is attached by a wierd twelve-point 6mm bolt from the inside of the knuckle. After stripping this bolt, I had to go in there with a dremel tool and grind the head off of it using a small grinding stone-- also involved grinding away part of the rubber mount for the ABS sensor to get in there in my case. If you have a 1/4 inch drive 12 point, 6mm socket, you should be able to get in there to loosen this bolt, but I was not able to find such a socket-- Sears only had a 3/8 inch drive, 12 point, 6mm which would not fit. I ended up breaking one of the protector things (they are fairly brittle) and had to buy a new set of them from Ford for about $40. The new parts came with new 12 point bolts, but I replaced those with internal hex-head bolts with the same threads.
3) Once getting the outer protective things off, I had a hard time with the spindles which were rusted on there really well. I used lots of penetrating oil-- if I had waited over night, that may have been enough, but I had a blunt air chisle handy and used that (carefully) around the spindle where it meets the knuckle to separate the two. Although I tried to be careful, I did marr the mating surface on the parts in a couple places, but made sure to grind those areas down flat before reassembly.
I'm not sure all this would represent "best practices", but it worked in my case, and the truck seems to be fine so far.
Good luck and let us know how it turns out.