Not having the parts in front of me I'm at a disadvantage but I can't understand why the dial won't fit. Seems to me that spacing the assembly off of the hub by .27" is the correct thing to do.
Yes spacing the assembly will also work but I saw a couple of possible issues. One the studs may need to longer depending on how anal you are. By spacing the assembly you reduce the penetration of the index pin into the hub putting more stress on the studs. All in all spacing the assembly should be fine for most people and an easy way of dealing with it if the assembly spacer was available. But after spending too much time on this I feel the best set up is an addition groove in the birf. And while you have the birf on the lathe drill and zerk it for greasing. But I save that for another thread.
