Back on the road again. Thought I would add a little more to finish this topic up. The bearings drove (bearing driver) in tightly but consistently i.e., no binding.
Problem one:
I already knew there was a small gouge at the end of the axle tube so when I installed the oil seals, so I added sealant (made for this situation) to the outside of the seal. I know that some new seals already have this sealant coating, but my gouge was too deep. I'm so accustomed to slightly taping a seal to get it started then use the seal driver to finish up, but this seal did not want to start. I measured the roundness and yes it was slightly oval, and I knew I didn't hit it hard enough to deform the seal. It was a National 414045 made in Mexico. The other National seal was completely round but a piece of seal elastomer had somehow stuck in a place it shouldn't be (the seal machine probably needed cleaning). I decided against using these seals. I happened to have purchased a second set of generic seals (Auto Extra) in the past (O'Reily) 414045 made in Taiwan. These fit well.
Problem two:
I installed the axles, placed the C-Clips on the shaft ends then pulled the shafts back, installed the spacer block (GM 370217) and center pin. I pushed the axles back in and took a measurement of axle end to spacer distance. OMG, both sides are much wider than 0.014", of what the manual says is maximum. I had other 1954 pumpkin parts for spares, so I started measuring. A C-Clip wears at the axle slot (at the axle end) and on the opposite side against the gear. I decide to flip them when I reinstalled. The center pin had some very small amount of wear, so I used a pin that had the least wear. The spacer block had some problem wear from the end of the axle running against it. I needed a new spacer. I purchased a NOS spacer (GM 372515), that has a finished surface on all the faces, that is used for adjusting axle end play. I ended up using the spacer face with distance that measured 1.168". Everything is now a nice snug fit. I'm sure that a few 100 miles these parts will wear-in a bit, but it will still be inside the tolerance.
Final comment:
While looking at the construction of my bad oil seal it dawned on me that if you have a lathe or precision cutter, you may be able make a spacer (big washer discussed earlier) if you wanted to use the old-style leather seals.