Once again removed the compressor and then the mounting block, Re-installed the mounting block with the 3 spacer shims between the mounting block and engine block, and torqued it to 15 ft-lbs.
Reinstalled the compressor and checked the idler pulley spacing. Had to adjust the compressor spacing arm a couple of turns until the idler pulley was spaced about evenly between the starter and the compressor pully and not rubbing on anything. Torqued all the mounting bolts and believe the compressor is now properly installed.