Ok, job complete - you guys rock. thanks for advice as always.
Here is overview, maybe it will help someone in future:
Driver Side - since hub was already removed, pulled the spindle. Ended up the ABS bolt head was rusted pretty good but was able to hammer on a socket and remove. The spindle was rusted onto the knuckle. Had to use the chisel method... Which created more work once removed. Had to take dremmel back to knuckle to deburr all the chisel hits on knuckle. Had to take the spindle to the grinding wheel to deburr.
While is was apart, found the end of the axle was worn from not having these parts for so long. The splined washer aka axle shaft spacer would not fit nicely. The grooves were not correct, had to take dremmel and deburr the bent edges. Tested - washer fits nicely. Did not pull axle (no need).
Found that old grease had hardened to create half the issue - cleaned all parts. The real culprit was the axle seal that sits past the u-joint but before the spindle seal (can't find a name for it on the diagram). Turns out some rust had pushed out the seal from where it was seated. Hammered it back into place, cleaned all parts, reassembled, & able to get the splined washer aka axle shaft spacer w clip into place. Had to use a pry bar at the u-joint to give myself some extra play to make it easy to place the clip on. All parts move freely.
Passenger side - rechecked. Found the "boot" mentioned early about halfway up on the axle. All parts move freely w washer & clip in place.
I have all 4 wheels off the ground and tires off to fix brake lines and weld supports for the cosmetic running boards. Once i get the trans radiator back on and trans hoses replaced i'll fire it up with wheels off ground to test the 4x4 and report back. I really hope nothing else breaks LOL.