So here's an observation - compared with picture #10 from your link, looks like someone changed the bearing (?) and put two spacers to keep the pulley up, however the spacers are not keeping the pulley high enough. I assume now I need to figure out where to get more spacers.
I agree. Here are my observations.
Your sleeve bearing is either worn down, pressed down too far, a previous owner replaced it with a shorter version, and/or the splined sleeve was not pressed up enough to be fully seated into the pulley. That's why there's vertical play when you lift the pulley. The sleeve bearing should stick up from the head frame casting. The inside ring surface in the pulley should ride on the end surface of the sleeve bearing. Is that a steel washer pressed into the pulley?
Maybe the previous owner pressed the sleeve bearing too far into the head frame casting. Check from inside.
http://vintagemachinery.org/pubs/222/4727.pdf
You may want to verify whether the steel washer (26714) and snap ring ((26811)are present at the bottom of the splined sleeve (26617).

















