The front bearing is a double lip seal bearing, there should be grease in it, unless the seal has failed.
The shaft is a good tool for guiding the new bearing in.
Loctite 648 is a high temperature retention glue. If you want the parts to assemble at lower temperatures you should use Loctite 641.
Speaking of temperature: what did your liner look like? (color)

A true bore in an old lathe can be made easily:
chuck some scrap metal in the 3-jaw and drill undersize for the front of the crankshaft.
Now bore it out, so the shaft is a snug fit. The bore is now true with the lathe spindle.
Assemble the shaft in the housing, and use some locktite to fit the shaft front end into the bored hole you just made. If you now rotate the chuck whilst holding the crankcase, there should be no wobble at all. If there is wobble or run-out, the shaft front part is bent, and should be straightened, or the shaft needs to be replaced.