Thanks to everyone who responded... and especially Andrew and Ron for the photos.
I got a chance to fiddle with the linkage again today, with absolutely no luck.
Here's what I'm sure I know so far:
1) There is absolutely no paint or filler putty on any of the friction surfaces. That photo I showed was taken the first day that I got the engine, so *everything* was still contaminated with green paint. Getting all the paint off of the places it shouldn't be was the first thing I did before I even attempted to make the linkage work.
2) The binding is definitely coming from that sliding post and hole setup. All the other linkage parts move freely and easily with no binding at all.
The rack moves in and out easily even with a good amount of side force applied and I'm sure that's not the problem.
3) The binding only occurs in a very specific spot, and only in one direction.(closing the rack) Everywhere else in it's travel it's as smooth and nice as can be.
If the rack is never opened more than about 90% of the way, It's fine. It's just one very specific spot as you begin to close the fully open rack that's a problem.
4) When working the governor arm (that comes out of the cam cover) by hand, the thing will lock up every time at that one spot, and it locks up SOLID. If I tried to put enough force on it "force it to pop free", I think something would bend or break first. It doesn't just "feel a little tight there", it locks up as solid as if it was welded.
HOWEVER, when it's locked up (and I'm still trying to close the rack with the governor arm), if I put my finger on the end of the rack and just give it a very gentle nudge inward, then the whole thing pops free and closes easily. You can *see and feel* that little post straighten up slightly in it's bore and let go. That damned post and hole setup is definitely where the trouble lies.
5) At first I just assumed it was because of the terrible raggedy "staircase" finish inside the hole, so the first thing I did was to ream the inside of the hole some to clean it up and also to grind the end of the post to a psuedo ball shape so that there were no square corners to dig into the side of the hole. As I cleaned it up, at first it seemed to get a little better, but it was still horribly unacceptable. But then as I reamed it out further it got way worse again and there was obviously too much clearance between the post and hole.
6) So... I drilled the hole out bigger and tapped it for a 1/8" brass pipe nipple. I took a nipple and cut it off to the right length and screwed it into the hole and drilled it out until the post just fit nicely into it. Voila! Instant brass bushing!
When I was satisfied with the fit between the "bushing" and the post I made a second bushing to toss in the tool box. That way if it ever wore out I'd have spare that I could change in seconds with a pair of pliers... Clever, eh?
And when it was all assembled with it's new slick fitting bushing did it work perfect? NOT! ... it was just the same as before.
SO. Here I am back at square one....
One of the things I've noticed from some of the photos I've received is that the bellcrank pivot bolt on mine may be located somewhat more to the right (closer to the injector pump) than the ones in the photos. Maybe that and/or other subtle geometry changes are causing a problem when that post/hole setup is at just the right angle. Shit, old VW jacks worked on the principal of "wedging" a steel post in a bored cast iron hole and it worked very well. I can only assume that the same principles are unintentionally at work here.
I just can't go with the suggestion that it will probably be fine when running, with some vibration, etc...
It's just *way too bad* to even entertain that thought. If it locked up when the rack was closed, I *might* give it a test that way, but since it locks up when trying to close a full open rack THAT sounds like a major hazard to me and my loved ones and I ain't going there. If I can't fix it to my satisfaction I'll sell it for scrap before I'd attempt to run it the way it is.
Fortunately it's a pretty low tech piece, and I'm quite certain I could build a new setup in less time than it's taken me to troubleshoot the old stuff so far...
Heh, I just read the post and looked at the photos by RF. EXCELLENT!
I'll give that a try next.