>Does anyone have any suggestions for re-greasing? And, if the bearings >are bad, how hard is it to get the inner bearing out? An archive >mentioned use of a drift, is this ok to use?

Kyle,
I just went through this with my 89 240. I cleaned and repacked my bearings and shortly thereafter they got noisey again. I purchased new bearings and cups (less than $25 for all of them), and they quieted down considerably (some of my noise must be tires).
The best way to pack the bearings with grease is to put a golfball sized portion of grease in the palm of your hand and force it into the back side of the bearing. Continue doing this until grease begins to come out the other side. Work your way around the bearing until it is completely packed full of grease. The inner bearing is only held in by the grease seal.
Use a drift and a heavy hammer to drive out the old cups. I put the new cups in the freezer for an hour or so and the clean hubs in the sun/beside the woodstove/or some other heat source. The absolute best thing I've found to drive in the new cups is an old cup of the same size that I have ground down the OD on. Start the new cups using your hammer and then use the undersized old cups to drive the new cups home (make sure you grind them down enough so they aren't a press fit anymore. If you use a drift to drive the new cups in be sure it doesn't slip and damage the new cups.
Grease the cups' surfaces and reinstall the inner bearing and tap the grease seal into place. Install the hub on the spindle and insert the outer bearing, washer and nut. I tighten the nut with a pair of adjustable pliers while turning the hub. I tighten the nut until the the hub begins to drag. Stop turning the hub, loosen the nut and then retighten the nut FINGER TIGHT. Install a NEW cotter pin and tap the dust cover into place.