Arrgh!!
It's time for me to eat some humble pie fellas.....you guys are right....I tried putting the crank in and yeah it's tight. See for yourselves:
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and now after I took the crank out again, you can see where it scuffed:
View attachment 78467
basically where the big end runs in the bottom (and also I think theres a tiny scuff further in, where the edge of the balance weight would rub - but perhaps that was there already).
Anyway, I guess it's a case of some very careful dremel work, I wouldn't be surprised if even as much as 0.25mm is overkill. Still, trying to be that meticulous will be a challenge (for me at least)!