Recheck dialing in the housing again. If you still have too much runout, remove the housing and inspect things as mentioned above. Is the runout in the hole or on the flat surface. If its on the flat surface, it until its within specs. If the hole is off, remove the dowels, center it, tighten up the bolts and drill and install oversize dowels. This has been a common practice for many years and is described in the Cummins service manual. It was in the book for the 855 cu inch Cummins that was built until 2003 and this engine could be rated up to 600 HP and 1850 ft lbs torque from the factory.
