Yes, that is your target dimension. That should bring your oil clearance in line. Now, I will get all crazy technical about the lube. Molnar and others love that extreme pressure #3 lube. Jesel, Eagle, Bill Miller all love it. Everyone but ARP! Even though ARP makes the fasteners for Molnar, Scat and the others. I like it too! But here is the deal. If you use Extreme pressure #3 on your ARP bolts, you need to stick with it. Don't use anything else after it's line honed. Now I understand why your housing bores have closed up more than normal. Extreme Pressure #3 provides even more clamping load than ARP Ultra Lube! Chances are if you cleaned off the #3 and used Ultra Lube the bores would be bigger. It's amazing how much these blocks move around with different torque and lube applied. I also recommend having your main studs float in the block. I do not bottom them out. I bottom them, back up 1/4 turn and mark the ends with a silver sharpie. That way when I tighten them I can make sure they stay in a marked position. This all makes sense now.
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