Well this engine drama just continues. Got the smaller size insert. Drilled and tapped the hole. Well, side to side, I am dead on. For and aft, I am off 1 degree from vertical. It's enough that with the head on, the stud is not going to screw in without a lot of force (bad) or with the stud in the block, the head is off just enough that the alignment pins won't allow the head to drop onto the block.

The only thing I can think of is to slightly enlarge the hole in the head. Any thoughts or am I screwed???