Well, this was the end result of all my efforts. It ended up locking up tight and you can probably see why. I ended up using a hacksaw to remove the barrel nut, because there was no getting it off otherwise.

I'm not too salty about this. Its a bummer because it would have been nice to have a 30-06 barrel laying around, but this thing is going to be getting an 8x57 tube anyways. I'm just thankful it wasn't the action threads that galled up. Those are 100% fine.