Hi Jim,
Normally you modify the non-original part to fit the watch, and not the watch to fit the non-original part. So cutting down the hour wheel is sort of a bodge in that regard.
For the hand, I'm not clear what you were doing with the staking set there, but the normal method of opening the hand up is to broach the hole larger with a cutting broach. It's time consuming and on steel hands in particular, but that would have been my approach on this one.
Cheers, Al
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