It worked beautifully. I spent $6.80 on some new pins and cleaned the pistons/calipers up good. Now my wheel spins nice and freely.
The brakes feel better too.

 

Re-read the 2009 manual-absolutely no mention of the 7/16" drill bit anywhere!

Found one spot that said"be sure the spacers have the large chamfered end facing away from the wheel", so I took it all apart, and there's no damn chamfer on either end of the spacer!!!

Looking at the pix for the fxdx, the right side spacer has 1 groove facing out, the left has 2 facing out, so that's how I put them back. Took the axle cap off to be sure they had it on right. Initially I only loosened it enough to get the axle out. Guess what, the asshat had it on backwards! The cast spacer was to the front of the bike, not the rear per the manual.

Put it back correctly, torqued the axle to spec (60-65 ft-lbs)-wheel spun freely. Put on 1 caliper, the wheel spun easily 1 1/2 turns; put on the second caliper, wheel spun 1 turn- much better than before. Went to torque the axle cap screws, and as someone had mentioned, they're very soft and I had chewed them up quite a bit. Decided to remove them and get new ones. BTW 3/16" is a little too small, 7/32" is too big. Or did the MoCo dipsh*t screw them up already?

Do I have to get the HD "soft ones" or can I use some stainless from Ace Hardware since I'm torquing them to 12 ft-lbs anyway. Shouldn't be enough to strip the fork female threads I wouldn't think?

 

If they're the same ones used on the 2007, a 5mm hex wrench is an exact fit.

(I edited this because I apparently can't read numbers and wrote 6mm when the screws are actually 5mm. It's worth noting that they're a damn fussy 5mm too. I have a ball-head 5mm wrench that will slip in the screw -- it really wants a good, sharp-edeged, flat-topped hex wrench.)

 

Sorry, for some reason I thought you had a 07' FXDB????
Looking at one at the dealer it appears you still would use a bit. I did notice all the spacers are different on the 08' up dynas so they must have changed the procedure.
CB

 

Ditto. I did a good cleaning and they stopped sticking. Problem solved. Thanks.