I have read that the only way to test a motor's windings correctly is to use an expensive megohmmeter I don't have. If that's wrong, feel free to let me know.
I'll post a photo of the motor. I don't have a shot of the nameplate right now. It's a 1/4-HP GE. I believe it says "Type M" on it. I haven't made any effort to find out what that means. In the photo, you can see the rubber mounts which I don't know how to remove.
1. You don't need a megohmeter, you only need a regular one which you already have. Check from hot to ground, check from neutral to ground. (you already know from checking hot to neutral that the windings are ok at 2 ohm). You are looking for ground faults, not high voltage insulation failures. You should see infinity readings, anything else is a problem. Also check the wiring from plug to motor etc. is correct and not hot/neutral swapped or ground missing.
2. Unless you find something wrong with the motor, don't take it apart. And so removing those isolation mounts is of zero relevance to any issues that there might be, unless they are trash (which they don't appear to be). At worst once you get the spindle sorted out you can put a similar 1/4hp motor on it to test.
This will sound harsh, rude or impolite but you need to a) slow down, b) pick whose advice you are going to follow, c) get methodical on how you approach this refurb/re-awakening of this machine. There are a lot of opinions already in this thread. Some are on target, some are noise.
Start a check list of things to check so you don't forget them along the way. And take photos of every step as you disassemble (notice that I repeated that
Ask me how I know.
And most importantly get a manual and parts breakdown before taking anything apart. Take lots of photos before you and during disassembly. As far as I can tell there is none available for free online as a .pdf other than a catalog. The link I provided is the only source I found.
While you are not well enough to focus on working, take a bunch of photos so we can see what all you got with the machine, and what the spindle looks like from both ends.