Bad machine work or am i over looking something?

The book said .002-.007

If i would of had a used crank i would not of found this problem! install a dial indicator and found say, .004 i would of called it good and moved on. Which in reality i would have had .004 on the tight side of the cap/block and an extra .002 on the loose side.(opposite sides of cap and block)

When i install the crank with all upper shells the crank moves freely. Install #3 cap, it's free. when its torqued down the crank is stiff but can be turned by the counter ways.

I know I'm not doing a good job of explaining this.......Basically when the cap and shell are installed, it is forcing the crank over causing the 0 gap

Nothing wrong with the crank. were i can fit .002" feeler gauge in, it stays the same through the full rotation.

and yes i used lube on the bearing shells.