Brett,
You can grid the dogs quite easily but I would suggest buying a new gear if they are worn, unless it is big $$. In the late 70's I used to have to grind the gears on my Huskys lots. I was hard on the tranny and the dogs would wear quite quickly (and break teeth off too). The thing to watch out for is this: because there are 3 or 4 dogs it is a pain to grind them so they all contact (when reassembled) at the same time. It is not hard, just takes some care and attention to get them all the same. The hardness of the gear should be uniform throughout, not case hardened, otherwise the teeth would shear off under stress. Hope this helps. Cam.