From Classic Rendezvous, Mark Petry's explanation of the CPSC spindle and length/interference problems, and how to read the markings of the spindles.

Mark Petry's Primer: Some Cool-to-Know NR/SR Facts....

The 120 has nothing to do with rear frame spacing for drivelines.

From the pictures its clear that the crank arm/spider are going to hit the cup faces before the tapers bottom out and take. I too learned this the hard way and I have a feeling that you have a mixed generation bottom bracket possibly. A C-Record spindle and a pair of Record cups maybe, or as John said, a C-Record set of cups, and perhaps incorrect balls and spindle. These get mixed together by folks that are parting out bikes and doing the ebay selling, or at jumbles.

Bill