[Jared]

It's possible if you know what you're doing with the Bridgeport and pay attention to backlash.

To make the bearing bore, I'd probably use a boring head. If you don't have one and don't want to buy one, you can also buy a 1" drill bit ($10 for the cheapest reasonable one) and a 1.125" ream ($50).

I wouldn't use calipers and a punch. The center to center spacing of the gears needs to be within a few thousandths for the gears to not turn to dust in a short period of time.