I discovered it when I got it home yesterday. He did clearance the tie bar thinking that's what was hitting but, it's the spacer behind the tie bar that's hitting the bushing. That's why I'm wondering if there is a lifter with a higher positioned tie bar. At this point he's eager to fix it. The shame part is it was ready to go in the car. Now it may be a whole tear down or at least an extremely careful modification. Also, this is a tip for anyone that may buy a BME block. Check the lifter bushings!