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Thanks for the advice given so far.
Kenrup, if you talk about a "hard felt wide wheel", do you mean a stationary polishing wheel, or an attachment for the dremel?

The felt wheel is the 1/4" or...

This blade looks to me that somebody tried a Dremel on it already. I use a magnetic jig to hold my blades when I'm working on them. If I was restoring this blade I would use a hard felt wide wheel...