Ahaha Mr Hunt. Regarding case hardening, if they are case hardened undercutting will most certainly cut through it.

The reason undercut should be the standard is it prevents all those other gentle bits (forks, drum, etc) from getting damaged in the first place.

Yes, the engine has to get split to do the trans.
Can you give me a rough estimate on the total cost to have the gears undercut?
 
Vaguely recall something around $500 for the work on the trans parts. Costs to split and reinstall trans varies widely.
 
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