Here is an update for anyone who is following my adventure.
I received the M1-259 sleeves from Clausing. They are Clausing part number 10-932. They were $6.04 each and shipping to PA was $12.77. The ID of the Clausing part is about 0.002 inch larger than the McMaster part. The Clausing part fits onto the spindle shaft perfectly.
As Robert said, Clausing does not carry the other bearing - the M1-258B- so I had to reduce the length of one of the new M1-259s to .375. My first attempt did not go well. I held it in a 3-jaw chuck and attempted to use a cutoff tool. The part grabbed and crumbled into about 6 pieces. My second attempt was successful.
The mill is now back together. The spindle pulley/gear assembly works nicely. The bearing is smooth and quiet. I ran it for about 60 minutes without load and it is behaving itself just fine.
The ID of the Clausing part seems to be an unusual size that is not off-the-shelf from the usual suppliers of Oilite bushings. I don't know of an alternative to Clausing. I hope that they continue to carry the part. I suppose we could machine the bushing from solid Oilite if we had to, but that would be a chore.
I have found religion with regard to using that little oil hole. I will take the screw out and dribble some 20 weight oil in whenever I use the mill.