May be the engine was hydro locked from having to much fuel losseing the glow plug and turning the engine over usually works for that problem.
Was the flywheel on the engine nice and tight???? Have a look at the manual and make sure the flywheel is fitted corectly and there are no washers or spacers missing as that will cause your crankshaft end float and oil to leak out of the front bearing.
Remove your backing plate and look and see if the crank pin has been rubbing on it.
If everything is as it should be then i guess the end float is standard for that engine and the front bearing needs to be replaced and the backing plate resealed.
I dont have any expeirence with that engine in particular.
I hope something i have suggested fix,s your problem... Cheers