So you can see, StevieD, that your dealer was only being honest in the first place. Sometimes theres just no way for them to know what the job entails until they actually do it, so they have to protect themselves by telling you up front that they may or may not be able to fix it, depending on the damage. Some are dishonest, but not everyone is.
Anyway I'm glad that your friend could fix it for you.

 

When dealing with stuck or hard to get to races I just weld something to them and then I have something to press or drive on to remove them .

 

Weld a bead around the inside of the race (a little at a time to prevent overheating the aluminum housing) and eventually, the weld will shrink the race enough, it will come out easily.
Another alternative, is to use a die grinder to cut a groove through the race (don't gouge the housing) and it will also easily come out.
When you put it back together, use a little 'anti sieze' compound. It will prevent the race from rusting in there.

 

It sucks trying to get the old bearings out. I've done it before, but I ended up cracking the carrier too.

 

use a hack saw and cut it as far as possible into quarters then drive them out with a hammer and a rod or a piece of pipe. Be carfull and use a low angle so not to bend or crack the housing. " Remember if brute force does not work then your not using enough of it". Tell the shop to suck sand!!!!!