Thanks to everyone for great advice and guidance. The job is now complete! I cannot say it went without hiccups. After cleaning up and greasing all the old parts, I reassembled everything just to see if this would solve the problem. It did not. So, I waited for the new brake parts to arrive and started over. I am posting this in the hopes it will help someone else. This will bore anyone but a beginner, like me.
I re-cleaned the wheel with brake cleaner
I installed the new actuator using recommended grease on the piece as well as in the insertion hole. Installed new felt seal coated with motor oil. Make sure this felt seal is present! Wiped away excess grease that oozed out at actuator head. Important step!
I put thin layer of anti-seize on actuator where the brake shoes sit. I checked that it moved freely and was aligned correctly! Important step! The wide tooth area of the actuator must face outward, away from the axel. IF you put it in the wrong way you will have to remove the brake shoes and rotate the actuator to the correct position.
I applied thin layer of anti-seize to the two post that hold the brake shoes (on the right hand side).
I installed the new brake shoes, wearing new clean gloves. I thought they were in place but it took a gentle tap with a rubber mallet to get them fully seated. Important step! Installed metal holder and secured with new cotter pins.
I inserted the spring, wear indicator and cable holder onto the actuator while I held it firmly in place. If you have trouble getting the wear indicator or cable holder on and are not holding the actuator in place it will want to push back out and the spring will come loose. Aligning the cable holder correctly is critical to success - match the punch marks! I could not see the punch mark on the old actuator and I kept putting it on incorrectly. This was due also to its bent teeth The new actuator was simple to attach and slide on with no resistance. If the cable holder is not pushed all the way onto the actuator you will not be able to insert the bolt that holds the holder in place.
I disconnected the cable at the left handlebar and made sure it was not twisted or routed incorrectly. Cable is only 1 month old.
Installed new handlebar bracket and reconnected parts (In another post on this forum). Reattached the cable at handlebar.
I inserted front and foot pedal cables, with springs, into the wheel bracket. I tightened only the brake pedal cable, for now, until it had the correct free play and felt reasonable firm.
I checked the movement of the brake shoes by moving the cable bracket forwards and backwards a few times and watched the actuator. Everything was moving freely.
Back to the wheel:
I inserted a new O ring on the wheel and applied grease per manual.
Installed brake drum.
I applied grease to the axel grooves, carefully. Do not get grease on the axel threads.
I checked that the rubber seal on the wheel cover was not damage and still pliable. Coated the seal with grease and installed the cover.
Installed the wheel nut and had a friend depress the brake pedal while I torqued the nut to 101 ft lb. Inserted new cotter pin.
Remounted the tire.
Adjusted the handlebar brake cable to meet the adjustment of the foot pedal brake cable.
Drove up and down my driveway and adjusted both brake cables a few more twists.
All working fine now, well, except for the parking brake. It does not hold as well as it should but I think the problem is with the left handlebar lever. It is loose around the bolt, probably due to age and abuse. I have ordered a new lever and see if that fixes the problem.
I did find that it is very important to follow the steps carefully and place grease and anti-seize where necessary. Also, adjusting the rear brake before tightening the wheel nut made the overall adjustments easier.
I hope this is helpful to you.