I talked to the machine shop again today. I decided to pull the rear bushing. After all of this work, I just didn't want any extra play in a bushing, even if it possibly would not be an issue. So, now the question is, how to correct it? The machine shop told me today that there is an outfit in town with a portable line boring machine. I suppose he didn't want to lose the job and tell me that earlier. He also said they may want $100/hour to go do the work offsite.
After thinking about it more, I decided to pull the rear bushing, put the shaft through the front bushing and out the rear bushing casting and measure in various points between the shaft and side of the casting, as I said I would do, if I was to do this again. Well, I'm doing it again. I did this in 8 places in the front of the rear casting hole and 8 in the back of the rear casting hole. I used a small steel ruler with divisions of 64ths. I tried everything else I had, and this was the best way.
There is about 3/64" difference top to bottom and 11:00 to 5:00 o'clock from the back of the rear bushing. The numbers from the front of the bushing were all within 1/64" of the back with one exception. It is more difficult to measure from the front, since the front yoke is in the way, so I would expect some variance in the numbers. I also just realized as I was writing this, that the back bushing is a tapered bushing, with the narrowest portion in the front. That explains the difference between my front readings and the ones from the back. The front may be narrower by about 2/64"diameter. I will talk the measurements over with the machine shop and decide what to do. I am hoping that the numbers show that the shaft is passing through the rear bushing level and not at an angle. If it is, a new bushing could be drilled with the center of the shaft hole offset to correct for the misalignment.
If this won't work, it will probably be new bushings and big bucks line boring. However, that raises Mike's question, which I had already contemplated. That is what do you line bore against as a reference? Nothing on the casting appears square or level. The only thing I can think of would be the flanges on the front and back yokes outside of the bushings. They appear to be the only machined surfaces on the hammer.
I also noticed while I was measuring things that the casting hole in the front yoke is probably 1/8" thicker outside the bushing one one place as compared to others. That is a bunch. Obviously, the casting holes were not centered in the yoke casting.