I spent many hours looking high and low for the special Ducati tool to remove the lower bevel bearing housing from the case, but I only found one very expensive tool for a twin. After turning up nothing but dead ends I posted the question to the Bevelheads listserve, and Mr. Frank Scurria himself answered my question. It turned out the housing can be removed without the special tool - simply remove the circlip and shims from the top and tap gently on the bevel gear to move it upwards.
Once the bevel gear nearly touches the engine case, remove the gear and shaft, and then pry the housing out using two screwdrivers and wood blocks (I needed one hand to hold the camera, so this pic is obviously posed). It worked a charm.
Now that the housing is out, I need to order all new engine case bearings ($308) and find someplace trustworthy to rebuild the crank. I also need to decide if I'm going to reuse the original piston and resleeve the cylinder or bore the cylinder and fit a larger piston.
Right now this bike is for sale on eBay with a buy-it-now price of $6500. It's almost exactly what I would like my Ducati to look like, but the only hitch is the cost of the tank and seat. They are handmade by Evan Wilcox in Oregon and cost $2350. I guess I'll wait and see what I end up with by the time I get the engine completed.
