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What's happening is that the axle is stuck to the wheel bearings so it will rotate but won't move longitudinally.
I think there are a couple of different axles -- the later one has a nut on the axle bolt and the earlier has a flanged bolt that screws into the end of the axle.
I think you've got the version with the bolt in the end of the axle on a '97. If so, put the bolt about 3/4 of the way in and tap it gently with a hammer to break the axle loose from the wheel bearings. Don't whack it so hard that you damage the threads or the bolt!
If that's insufficient, use a piece of aluminum or brass bar that fits into the hole as a drift and whack the end of the bar to drive out the axle. You should be able to find aluminum bar stock at a local hardware or Home Depot. You you only need a piece about a foot long.
Be aware that if it takes major pounding to remove the axle it's going to damage the wheel bearings.
When you get the axle out, scrub it with steel wool and oil to strip off any surface corrosion. Don't use sandpaper or you may do more damage than good. If there's a lot of pitting, replace the axle.
Before you reassemble, be sure to grease the axle and the inside bores of the wheel bearings. I recommend a high-temperature wheel bearing or 'disc brake' grease since it doesn't melt and flow when hot. The object is not to lubricate the bearing or axle but to provide a barrier against corrosion so using what sounds like the 'wrong' grease works fine.
Jim
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