I reamed out a quill stem once in a machine shop for just this situation. Rode it for 5 months without any problems. The <1mm amount of steel that I lost is not going to be effected at all by the small amount of pressure I put on the bars, even when out of the seat.
EDIT: Didn't realize it was an open faced stem. Bad Idea, enjoy your new stem.
Last edited by Zachee; 07-14-09 at 11:06 AM.