You simply attach the magnetic base to the back of the crank and set the indicator tip on the rear mounting surface of the block then rotate the crank. This will tell you how far off the rear face of the block is "out of square" to the crank. All of your .010" might be there and not in the bell housing. Although you did say in your initial post something about a "block plate". Is there an adapter plate between the bell and the block???