On Saturday I went to the workshop full of renewed enthusiasm. I had decided that I would rebuild the bike according to the hand book. I fitted the shafts together, made sure that the flywheel cleared the casing, and torqued up the two halves. No problem. Checked the run out. 0.035". I decided that drastic action was required. I fitted a suitable available length of pipe, got my club hammer, and wacked the end of the pipe. Run out down to 0.015". I continued to gently work on the shaft in the same manner until after an hour or so it was running at 0.001". Great. So I have now started to put the bike back together. The engine is now back in the frame and the rear wheel back on. It now looks like a bike again. Will it start when I have finished putting it together. I have no idea. I didn't work out why it didn't go in the first place. I have now renewed all major parts fitted them according to the hand book. It has been a steep learning curve for me, which I hope will now bear fruit. And strangely enough as I get more tools and pullers etc to make taking it apart easier, I have quite enjoyed it.
Once again thank you for you help and advice. It is very much appreciated