Hi Jon,
Dismantling the ML7 headstock is not difficult if you proceed with great care.
There is a threaded collar at the left hand end of the lathe spindle with a grubscrew in it. If you loosen this screw you should unscrew the collar a turn to make spindle removal easier. You could mark the position of the collar on the spindle before unwinding it, or follow the rather vague instruction from the Myford operating manual on reassembly to tighten enough to eliminate end float without "undue friction by over tightening". I have used the latter technique with no problem.
You will probably need to remove the belt guard to get to the cap screws holding the left hand bearing cap (imperial allen key required). Lift the cap very carefully from its seating (some persuasion may be required) and note the position of the shims on each side, set aside carefully as these shims and their position are of paramount importance. The drip oilers can be left in place, but if you remove them plug the holes in the bearing caps to keep out dirt. From this point on cleanliness is vital.
Repeat with the right hand bearing, noting position and orientation of the shims. Carefully rotate the spindle and lift it out of the lower bearing halves taking care not to dislodge the whitemetal bearings.
Protect the spindle by wrapping it in something clean and remove the 2BA grubscrew from the 25T gear at the left hand end. This gear has to be removed and may take some persuasion, likewise the distance sleeve after the locking collar, thrust washer and thrust bearing have been removed. The vee cone pulley assembly should then slide off.
It is then your call as to whether you repair the gear/pulley assembly or fork out nearly 90 Quid for a new one from Myford! As regards the hole in the gear assembly, I would be inclined to line it up with the oil nipple in the pulley assembly.
Re-assembly is just a repeat of dismantling but making sure that everything is absolutely clean. To align the 25T gear with the half thread on the spindle I used a short piece of bar slightly smaller diameter than the core of a 2BA to guide the gear back into alignment with the spindle.
Before re-fitting the spindle, take out the countershaft and fit a new headstock belt.
Gordon.