What kind of setup is he going after? Step pulley? Direct drive? Personally, I think 3450 RPM is too fast for MOST grinding, other than hogging on coarse grit belts. 1725-1800 RPM would be more ideal. Also, 1hp is on the absolute low end for power, especially with a 3-4 wheel setup. A belt/pully drive train will pull out even more of that power and the grinder will likely stall a lot.
Is it an open frame motor? That would be another point against it.
I'm not saying he can't use it, but it'd certainly be far from my first choice.
As for drive wheels, 4" is a pretty standard size, and widely available for $35 or $40.