There is a special tool to cut those staked u joints out. Pretty much like you are talking about, kind of like a hole saw.
But like said above, i wouldn't even mess around with it. Junkyard driveshaft is the way to go.
2007 F-150 SCREW 5.4L 4wd
Pioneer AVH-3300BT, Kenwood 6.5 components, Infinity coax., 800W Kenwood to JL Stealthbox, MBRP XP Series, Drilled/slotted rotors, Bully Dog GT, 2.5" HBS level, Advance Cover, Weathertech liners, 325/60/18 Terra Grapplers, EZ down tailgate damper, LED swap, LED puddle lights