PlumBad,
Did you have clearance at the pin boss (yellow)?
From your pictures, it looked like the block interference was at the red area.
Do you know what the crank counter weight dia (or radius) was? As you can see from my calcs, somewhere around 7.1"-7.3" dia is typically needed and most cranks will come between 7.32-7.5. My Callies 4.250" crank came cam cut to 7.32 where it approaches the piston at BDC, but larger at the leading and trailing ends of the counter weight. But I cut mine down to 7.1x dia for balancing.