I also found the brushes to be stuck and had dug into the commutator some. I mounted the armature on the lathe, and used some 400 and 600 grit sandpaper to clean it up. 80% of the circumference of the commutator cleaned up pretty quickly and highlighted the damaged section. It won't take a whole lot more sanding tomorrow to finish it up. I'll probably finish up with 1000 grit.
Score another victory for the Shopsmith! Without the lathe capability I would probably be spending several hundred on a new generator.
PS: the spacers between the coils are wood. That's cool.