[kdjones2000]

I took a good look at your picture of the RMS, and it looked to me that it might not be fully seated. Hard to tell in that picture.

It sounds like you are doing the right things however, so that's good news.

My experience with these things, after doing 5 or more, is that the brown Kaco seal that is present in the Victor Reinz lower conversion kit is harder to put in successfully. I think I am something like 1 for 4 with Kaco. The black Elring seal has worked well for me.

I use something close to what you used, only in my case I use a second RMS seal along with a threaded 4" PVC cap to drive it in.

I just don't want you to have to do it all over again...

I use a piece of wood over the bearing to drive that into the crankshaft. Many ways to solve that problem.