Thanks for all the help and comments. I'm moving forward with the restoration, although it may take some time, you know how busy us retired guys are. I did an insulation test on the motor and it is fine so I'll be retaining it. I may try a simple static phase converter first using capacitors. I'm doing some homework now on how to pick the right size caps. If I loose too much power (its only 1/4 HP now) I will go the route of a VFD.
Since this grinder uses the side of the wheel I need to find out how to dress the wheel. I don't see any mechanism for this on the machine now. Any suggestions would be appreciated.
The other thing I'm curious about is the function of the knob on the bottom. It turn an acentric which I think will impact the angle of the grind on the tip. Anyone know how this works?