That hole isn't particularly critical- - - -with a little careful setup on a drill press you can make a dimple in it to receive the nib on the bearing. Puta dab of Prussian Blue on the nib, and carefully slip the bearing over the cap. Once you have the spot marked, simply drill a shallow hole so the bearing shell will fit snugly into the cap. I don't think it would be a good idea to file or grind the nib off the bearing. That would only leave the tiny tab on the upper shell as the anti-rotation safety device. Chances are the crush on the bearing shell would keep it from spinning, but the dowel would add a safety factor.
Kevin- - - -I'm building a self-aligning fixture that bolts into the bearing webs with a big side milling cutter to narrow that thrust bearing web on the 216. It can be driven with a variable speed 1/2" drill motor. Once I get the fixture finished, I could probably loan it out to stovebolters who want to whittle on a 216 block and don't live close enough to me to bring me their engines. I hope that your "machinist" uses a lot of K-Y Jelly if he charges his customers rates like that!
Jerry
