I bought 2 new rotors and had the outer bearing snouts turned down by a machine shop ($50). I then removed the wheel studs and installed new studs that were a 1/2" longer (supported the rotor and drove them in slowly with a sledge hammer). I also used 1/4" wheel spacers.
Test fitted the 14" wheels with lug nuts and they were indeed locked up tight as expected. I drilled some guide holes about 1/16" deep and got to work with the grinder. Tried the wheels again and could spin but still binding in a couple of spots. Took the rim off and I could see where it was binding by the marks left. More grinding and then bingo!!! the 14" wheels fit. You can see in the caliper pic where I had to grind.
Now have to install the master cylinder and plumb them together. View attachment 74751