It is usual to fully assemble the block before putting it back on the transmission, but there is nothing that says that you have to do it that way. At one time it was common to cut out the metal between two of the slots in the inner wing, so that with the radiator removed, also rocker cover, rocker assembly and push rods, it was possible to change the camshaft in situ. Easier on a non-A+, or non-1275, because you had to be able to raise the cam followers somehow.
The half moon seal is nowhere near the camshaft, and if the lower part of the engine front plate has been torqued down correctly against the gasket, I can't see why it would have anything to do with the problem, which would seem to be due only to the sprocket not seating fully on the camshaft. It is the gap between the back face of the sprocket and the fromt face of the camshaft journal, as has been said, which sets the gap into which the thrust plate runs, and even if the thrust plate was not fully in position, it would still run with the same clearance.
Is there a bit of dirt or swarf, or something else, between the sprocket and camshaft?
Well, after taking it all apart, cleaning and putting it back together its now nearer 0.020". Tried it with and with out the oil pump on and it came out the same. Am I right in thinking, If there is wear on the old triangle plate, then presumeably there will be wear on the cam. Anybody recommend a good quality timing gear or shall i go bananas and get a belt driven or veneer set up?
Venier, even