Teres installation questions

I know there are no stupid questions, just people not smart enough to ask them. Still, I have a feeling I'm not going to be feeling too intelligent by the end of this tread.

I purchased a used Teres 265 from a member of this forum (a fine experience.) Unfortunately, it took a while to get the "mint" Moerch DP-6 in shape, which I purchased over ebay at the same time (an awful experience.) But now everything is ready, so it is time to install.

Unfortunately, the placing of the spindle into the bearing housing is giving me some problems. I thought I had done exactly as directed, but...

The thrust plate was in place already, and Chris told me it did not have to be reseated. So after, placing the ball bearing in the bottom of the spindle, using a few of drops of oil as directed, and dripping oil into the bearing housing, up to the lower journal (and a touch more) as directed, I placed the spindle into the housing. This is where I think I have a problem.

The directions said that the tolerances were very tight, but the spindle fits in so tightly that it leaves no room for the air or oil to escape and leave room for the spindle. While I expected the spindle to sink into the oil leaving about 3/4" that would diminish as the platter weight forced the spindle down, the distance is about an inch and a half. It does not feel spongy or pop-up, but rather feels like a vacuum seal. I can't imagine it budging in either direction, out or in.

What did I do wrong? How do I proceed?