Stuart:
No, the crank shouldn't be bent unless it was before you took off the
timing cover. If the engine bearer plate is loose it will go up in
relationship to the block and the block goes down. Therefor the
bearer plate moves away from the crank as the block drops. Look at
Figure A.15 on page A.15. Also, Look at the cross section on page
A.34, and you will see that the bearer plate is right next to the
front main bearing. This wouldn't allow enough leverage for the plate
to bend a crank.
There should have been two bolts still holding the front plate and the
mounting bracket to the block:
1) Just below and to the left of the chain tensioner and it will NOT
be under the timing cover. This is partially visible in the
photograph "Fig. A.15" on page A.15 of the shop manual.
2) To the right of the cam retaining plate and this will be under the
timing cover. This can't be seen very well as it is under the cam
timing gear.
You are probably missing one of these bolts, and the engine has
dropped slightly.
As the transmission is bolted solidly to the engine, the output flange
of the trany would rise up and hit the underside transmission tunnel
stopping any further movement. The engine would have to drop several
inches for this to happen. Since you stated that the engine has
dropped about 1/8 inch, this hasn't occurred either.
You may raise the block using a jack, but I would try to construct a
wood cradle that would lift the block on both sides of the crank.
Lifting on one side could twist the engine some, making it harder to
get the holes to line up.
FWIW, unless you were losing copious amounts of oil from the front
seal all this work isn't really worth it. Additionally, EXTREME care
must be used in fitting the seals around the rear main or you will
have a leak bigger than the one you're trying to fix.
Blake
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