Hi, fellow 80's KDX'er. I don't know about relining the stock hubs, but I might have a couple of other possibilities for you. I don't know what your budget is or how original you are wanting to keep it, but here are a couple of suggestions:
You could buy a used wheel off e-Bay or similar - may be better, just as bad as, or worse than your hub, but price is not bad.
You could swap front wheel/forks/brakes to front disc brake, such as one from a later model KDX. This would give you much better front brakes AND front suspension.
You might be able to convert to disc brake in rear, but it is beyond the scope of this thread, really