OK, here's my thoughts.
I have the MacNamera gear on a brand new transmission output shaft (Extreme Transmission)... the best of both worlds. If it weren't for the slack in my 3rd member I'd have silent shifting.
Mix in the budget issues and I'd probably weld the spacer up, but I don't see how this could be as strong. A couple of problems that have come up in this discussion in the past.. one is that welding the gears will change the tempering of the steel because of heat, posibly makeing it weaker. Another issue is that the problem you are trying to solve is that the transfer input gear only engages the transmission output shaft over about a 1" space. Welding the gears and spacers means you begin relying more on the PTO gear to engage, which is even smaller than the origional input gear that is worn. The MacNamera gear replaces both gears and the spacer, and uses the entire 2.5" of output shaft.
DD113 is David not Doug. Might find more on a re-search. I have talked at length about this topic around the campfire with David.. we seem to agree that welding is a good trick, and will help it last a lot longer, but that the permanent fix is replacement of the input gear and that the best of all worlds fix is a new transmission output shaft and a new MacNamera type input gear.
Since you end up being the pioneer of all new solutions, how about finding someone to make a MacNamera type input gear here in the US for us? I bet you could sell 10 a year!
BTW, if you want to search the 3FE knowledge base you can do so on the birfield.com archives.
Hope that helps.