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I would measure the current size of the dowel pin hole then buy a reamer just large enough to clean it up. Then I would make a new dowel pin to tap into the block and use the same reamer to size the hole in the bell housing as well. You might find a drill where the shank is just the right diameter you're looking for. Don't do a half assed job. I've spent the last two years correcting dumb stuff the guy I bought my car from. It takes just as much time and only a few more dollars to do things right.
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