It sounds like the seal has not been driven home far enough. Since the engine is turning freely without the spacer installed in the seal, and you are pretty sure that all the entrails are in their proper places, I don't think that the problem has to do with a main bearing. It sounds like the seal spacer is rubbing on the outer lip of the seal when you tighten it down.
The seal on this side of the engine must be at least flat with its boss on the crankcase. If the seal lies flat (and you are sure that the garter spring side of the seal is facing INTO the crankcase), the seal may have to be driven in slightly further. If something is still rubbing, make sure that you have put the correct seal on the RH side of the crank. A properly-installed seal will not cause the engine to 'tighten-up' noticably when assembled. The spacer will be a bit tough to push into place at first, but the engine will still kick over easily. Leaving it alone and just going ahead and running it 'a bit tight' will probably only lead to a damaged seal.

Hope this helps! BTW, how's your crankshaft endplay?...