Re: pitted prop shaft bearing surfaces
Speedi Sleeves work OK for worn oil-seal surfaces but aren't hard enough to carry needle bearings.
The surface would have to be weld-repaired, machined, heat-treated and straightened, or some sort of metal spray or refacing as suggested that met the hardness requirements (Rockwell 60 or better is typical of the original equipment). If that's even possible.
If the shaft repair isn't hard enough, the bearings are just gonna beat the Snot out of the repaired surface.
Here's a very illuminating discussion at the Scream and Fly racing forum about this very topic:
http://forums.screamandfly.com/forums/showthread.php?t=204658
You might be better off (and cheaper) trying to find a good original shaft or even upgrading the motor with a later model lower unit. Depending on the model, it's possible to adapt a later-style L/U to an older motor with the funky brass-cam reverse-lockout setup. For the price of a shaft repair (if one really exists) you might find an entire lower unit.
HTH & G'luck...........ed