Please help. I'm trying to help out a friend with a Trek 7700 Y-foil in need of a BB overhaul. I got the arms off and the spindle out, cleaned and lubed the bearings (no small task). When I reassemble it binds terribly. Even when I leave the left arm off, and the threaded left cup somewhat loose, the right arm seats in completely and binds on the labyrinth seal. This is the arm binding to the BB, I can install the BB without problem or the spindle binding before I put the arms on. Yes, I've paid close attention to the L-R markings on the spindle.

This is driving me crazy. I've checked the inner workings and everything seems in order. These arms have a high torque spec, it seems, yet I cannot prevent this binding when I get about half to 2/3 of the way tight. What am I doing wrong?

Thanks in advance,
Frank