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Jerry, I just did the job you are planning. I drilled, chiseled, and then I used the torch to cut through the last piece of collar remaining against the axle. I did burn a small crease in the axle where the collar contacts the axle but that isn’t a problem. The area on the axle I burned a crease is where the new collar shrinks against when it cools. But be careful. Actually, the collar will come off even if you do not cut all the way through. You are relieving tension against the axle when you drill it. Your puller should be in place with tension on it as you are drilling and cutting. Check it often by taking up a turn or so. I would agree with Jim that you should plan on replacing outer and inner seals, the bearing cone and cup, along with the collar. I would suggest that you turn the axles in a lathe and polish the surface where the outer and inner seals ride before re-installing. I can assure you that the surfaces will be pitted. I would suggest that you have all the new parts in place before you attempt the removal of the collars. You will see the depth of the collar is and will know how deep to drill. Off hand I would say the collar is more than two inches in depth. I replaced my backing plates also as the drums had worn them bad. They are not the same on both sides. Be sure to mark your old ones, left and right to get the new ones back on the same. And be sure to order one each, left and right backing plates. I got a used backing plate from Tanty Tractor in Southern California for $50. He has several 100 series tractors he is parting out. Call him at 1-800-305-2399. He is easy to talk to and knows his Fords. The one he sent me was not the same as the one I took off. It didn't have the channel for the dust seal. It must have been off an older ford, unlike my 801. Be sure to require that the backing plates you buy are identical to the one you are taking off. The only difference I could see in them was the channel for the felt dust seal. Brake shoes come two to a box but you should order the total number of shoes you need, i.e. 4 shoes. The kits to install the new brakes come one kit to a side so you should order two kits. Look closely at the wheel studs and bearing retainer bolts. Now is the time to replace them if any are broken or damaged. A press should be used to press them out. For my puller, I couldn't find 9/16" all-thread so I used two 9/16 soft steel rods (rebar should work) cut to length, with a 9/16" fine thread nut welded on one end and a 9/16" bolt welded on the other end. I then used a standard saddle puller with the bolts up through the legs of the puller and the center of the puller on the end of the axle to pull the retainer off the axle. I spent more time making the puller than doing the job! A picture is worth a 1000 words. I could rig up the puller tomorrow and take a picture if you would like. Do grease the bearings well before installing. This is all the lubrication they get for the rest of their life! Do not over heat the collar to expand it. It should just start to get red, (black-red) not cherry red. Otherwise excess heat may melt the bearing grease or worse, damage the rubber in the inner seal. This is way too long, but more info is better than not enough. Good luck.
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