The center of the crankshaft is 0.5mm above the engine mount. Picco seems to be on the mount. I made spacers for 0 and +0.5mm

Heaters on the sleeve is not needed but when using cartridge heaters it is adviseable to mount them on a kind of heatsink with the temperature sensor of the controler with it so the heat is well spread and the sensor is reading right. You only have to wait longer to get the oil well heated.