I know I can respace the locknuts and spacers so that
the wheel can fit,but there will be too much axle sticking out
on the side of both drops.....should I just grind the xtra off?..
Whichever you like. Be careful if you grind it down... keep a cup of water handy and dip it in frequently so it doesn't get too hot. If you go wild with the grinder and don't cool it as you go, you risk annealing the steel, which means you lose strength in the axle. It would be safer, faster and easier to cut with a hacksaw and simply clean up the end with the grinder.
Honestly, though, a new axle should cost about $10.
... Honestly, though, a new axle should cost about $10.
Or less if your LBS has a used one in their parts bin. I got a used one for my Continental at the most awesome Blue City Cycles for $5. (It might have been less? It was a while ago.) Its been working fine!
The canonical test when getting a used axle is to make sure it is straight. Just roll it on a flat surface and if it is bent it should be obvious.