I bought an old cheapo mountain bike a month or so ago that had a rear wheel that was wowed at least that badly, it wouldn't turn through the chainstays. I loosened up the spokes and bent the rim somewhat back to shape pressing it down over a 4X4 chunk laying on the ground. After much flexing and retruing the wheel by snugging up the spokes I got it trued up pretty well. Less than a 1/16" of an inch wobble or out of round. I could have worked that last bit out but since I was giving the bike to a kid who wasn't going to put a motor on it decided it was good enough. It did take me a couple hours fiddling with the thing, probably could have bought an old bike for the wheels but it was a bit of a challenge and I had to see if I could get it straightened out.