How much clearance do yoo actually have? that will prolly be the deciding factor. If it's .0001" out of tolerance no biggie, if it's .002" then I don't think the loctite would last.
The only loctite I would use in this application is the green cylindrical lock stuff, caint member the number. i have used it on machinery in the past and it is decent stuff. Having said that, i figure it is a band-aid to cover up a problem instead of eliminating it, something you would do if you plan to sell the car is two years.
If it were me (and I'm glad it's not) I'd have one of my machinists at work bore it oversized about 1/4" and shrink in a 420 ss insert to restore the proper fit if it is opened up significantly. You have a full machine shop, right?
Granted that may be overkill and the loctite might last longer than that car, but it also might not.