Tim, as you stated this seems to be a common problem and one I faced as well. I don't know why a perfectly round hole would get wallowed out so oversized bushings alone seems a half solution. The local machine shops could ream the spindles I had to size but couldn't guarantee proper alignment after reaming.
I sent my spindles to Sid at
http://www.droppedaxles.com/. He reamed them properly and fitted oversized bushings for a pretty reasonable rate. They came back perfect. I have dealt with just about every vendor mentioned on this list and Sid is one of the best.
Chuck
