That clearance sounds good. If the bearing isn't scored too badly it can probably be re-used. How is the clearance between the wrist pin and the piston? That's hard to measure, but if there's any noticeable slop or wobble, that's too much. Normal wrist pin to piston clearance is down around .0005" or less. Before the days of throwaway engines, we would hone the pin bores out and install slightly oversized wrist pins to get the clearances right.
Jerry
