To answer my own question, it appears to be correct. The shop manual calls for driving the cam end plug to either flush w/the block or no more than 1/32" deep. This is to keep the plug from covering up the drain hole I rekon. Looks like there will be just enough gap between the bearing and end plug to allow excess oil a path to drain back to the pan.
Spent some time measuring & fitting the pistons & rings tonight.
Piston clearance in the cyl's is right at .002 and all ring gaps fall within spec. I then labeled the pistons & rings with their respected bores for later assembly.
Pic 1 Pic 2 Pic 3 
