I never have done it with forklift tires, but had to remove the foam from a couple of front tractor tires. What worked for me was cutting the tire itself with a Sawzall, all around the circumference and then across the tread, so I could get most of the tire off, leaving the beads. Then I attacked the foam donut with the sawzall and some pry bars, until the foam came loose in several large pieces. The beads are still fairly hard to remove from the rims, but eventually I was able to pry them off.
Like the other posters, I would worry about ruining the strength of the rim if I burned the tire/foam off. Also, in my area burning ANY tire would probably get me in trouble with the air pollution control folks. I just would not even consider burning it off.
You wrote that the tire is cut real bad. Depending on where the cut is, the foamed tire might work just fine like it is for years, unless the cut is spreading or if the tire is flapping and rubbing on the machine. The solid foam should hold just about anything up, but if the tread is not there, the smooth foam will have poor traction on anything very slick.
Removing the old tire and foam is not an easy job, but it is probably one most people could accomplish. The second one I did was WAY easier than the first one, because I had some idea of how to do it. Good luck!
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Today's Featured Article - The Day Mom Drove the 8N - by Brian Browning. My Dad was wanting to put in a garden but couldn't operate the 8N and handle the old horse drawn plow he had found and rigged up to use with the tractor. Well, he decided to go get Mom out of the house and have her drive the tractor while he walked behind the plow. You got to understand that while my Mom is a hard worker who will always help whenever she can... she had never operated farm machinery before that day. Dad got her out there, explained how the clutch was the same as in our o
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