Recently I rebuilt a distributor for a Triumph TR-6, which uses a Delco distributor almost identical to a stovebolt. I bored and reamed the housing and fabricated upper and lower bushings from oilite bronze, then used a chucking reamer to line-ream the bushings so the shaft would run true. If you can get a rebuilt dizzy for under $200.00, you'll probably save money over having a machinist tool up and rehab your current distributor. There's a lot of setup time involved, and at least one precision reamer, maybe two involved in the job.
Jerry