My center pulley was cobbled together on my O when I got it, someone tapped it and bolted washers to the top and bottom to hold the bearings in. I bought a new to me center pulley assembly on ebay because the c-clip groove was worn away on my original one (hence what the po did). If I remember correctly (its been a few yrs) there is a spacer on the bolt between the 2 bearings and a groove for a c-clip in the pulley at either end to retain the bearings in. This allows you to tighten the bolt and not bind the bearings. Come to think of it there may be a spacer on the bottom to raise the pulley for clearance and alignment. It sounds like you don't have the center spacer which you can make with some careful measuring and a piece of pipe.
Bill
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