I am currently building my first plane, a Kadet LT-40 kit. I have only run into one problem. This past weekend I installed the landing gear block. Everything looked fine when I did the test fit, but when I glued it I noticed that there was approximately 1/16 inch overhang (out of the bottom of the fuse) Guess I just wasn't paying enough attention when I test fit the piece. My question is, will there be any problems if I sand the piece down flush with the fuse and cut the slot deeper?

i don't think it has to be level with the fuse at all.

I agree, it shouldn't hurt anything to leave it 1/16th below the fuse, but if you'd prefer to sand it down that would be fine too.
Dennis-

I agree with the other posts. You are ok with i he block below the fuselage and if you feel like sanding go for it.

If it won't cause any problems I will probably leave it as is. Will this make the bottom of the fuse more difficult to cover?

Mine turned out the same way. I'm adding Dubro fiberglass gear to mine so I sanded it smooth. I would probably sand it smooth any ways just to have a nice finish. How did your wing go together? I can tell you that I hate folded plans and won't be getting another kit with them unless I really want that kit..

Hi the cure for folded plans is using an iron to smothe out the creases. NOTE TURN OFF THE STEAM! Then make a trip to KINKOS and make a duplicate set to build over.

My wing went together fine. The only other problem I had was with a warped aileron, but it seems I was able to get all the warp out before I cut in the hinges.