Decided to work on this some more this weekend. I still have to get another ring and pinion to put both sides together. I tested the one side and it works very smoothly and not much gear noise at all. I did manage to make the wheel hubs but I need some longer #2-56 lug bolts. Maybe by the end of the week I'll be able to test run it.
Cutting the gearbox cover:
Turning one of the hubs. I used steel so I get as much weight as possible for better traction.
Centering part to get the lug bolt holes and undercut where the original toy's bearing would hit:
Undercutting for the original hub bushing:
Drill:
Tap for #2-56 bolts:
3/4 done: