Last time, I found the crank binding due presumably to shims that were too tight. So I took apart the flywheel once again! But to get the shims out/in, I had to take out the oil seal, which destroys it. So I need to get a new one.
So now I'm testing different shims by pure trial and error, and the dial indicator setup you see below. First try tonight, micrometer read .018", which is way too much. So I put in another shim and it's to .012", which is still too much. So tomorrow night I'll try a different shim combination until I get the right reading.
Stand + micrometer in place.
With crank/flywheel all the way forward, the micrometer reads 0.
Pushing the crank from the prop hub, the micrometer reads .018". Too much.