Thanks for your help everyone. I've found the problem, and it's not me. I sanded down the spaces a fraction, rebuilt the shocks AGAIN with all the RSD parts and they were still really bad. I've been racing tourers since 2000, so this has had me stumped.
The problem actually is the shock itself. The shock shaft has the lines on it from where it has been lathed and it has left small serrations all along the shock shafts ( I can try and take a photo of this if anyone is interested). When the shock is built, the serrations are grabbing on the spacers and o-ring and making feel like its full of air and 80+ shock oil.

Now for the million dollar question... Anyone else had a similar problem? Run your finger nail along the shock shaft... Mine are rediculously rough. I took them around to a mate and he couldn't believe it.

Good shocks? I received the lemons.

Thanks again for your help everyone... Much appreciated.