I don't think it would be a problem with round neos.
Setting the magnets into the steel rotor will short out the flux. They could go in a small percentage, but not much. Many people have machined the rotor, then used a pressed on aluminum cage dilled to hold the magnets. It's something I can't do.
This would work with a lathe, and a lot of time with a file... http://www.fieldlines.com/story/2007/2/2/55123/75010 [ Parent ]