Hey ghost after 10 minutes of staring at your avatar.....wait what?
Lol. But yes I did bearings sit inside both just fine and move smooth and free they do sit above the neck lip if I remember right. And there is a chrome shim type washer on top and the bottom is the shim with the track for the tang for the stop.

 

Here is the top

 

Have you placed the top tree upside down on a bench and used a square placed against the underside of the top tree and against the stem in several locations around the stem to verify that the stem is perfectly straight.

 

They are smooth to the touch guys and level. They are in there good heated them up to 2000 deg and tried to fast freeze em out no luck.

 

Ghost nah i did not do that, funny thing, to me it almost looked a tad bent to the side but I thought it was my eyes playing tricks on me. I know though it is to lose I could not break it free at all.

 

It almost looks like the bottom of the bearing cage is touching the neck. Just by looking at the yellowish grease mark in the pic above.

 

Could be but there was only red grease in there that might be rust line. Also mybe it's normal look at the pics of the bottom is it me or is the neck hole oblonged to the right? That can't be right.

 

How much clearance do you have between the top tree and and top of the neck and the bottom tree and the bottom of the neck when they are installed and the bolt tight?
Realistically there are only a few reasons why you would be having this problem. Stem not square with the trees, bearing race not properly seated, wrong or worn bearings and races causing something to bottom out and bind when tightened up. One of those will be the problem.

 

Not sure on the clearance but there is no gap really at all and bearings are brand new. Must be the stem. I don't see a new stem on pro one site wonder if they sell new ones at all?

 

If I remember correctly when the top bearing in sitting in the race it should be sticking up above the neck a little over a 1/8". Same for the bottom. Does the dust cap that goes between the top bearing and the top tree look like it's been touching the neck?

EDIT: Not saying the bearings have to protrude an 1/8" but they do have to at least protrude past the neck.