How long have you waited for the spindle to sink? I remember waiting about 24 hours, impatiently!
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Just a suggestion.
After you put the required oil (about 4ml) referenced to the lower journal, make sure that no oil drips to the side of the bearing housing (walls) before inserting a totally clean, oil-free spindle. During the "insertion" process, do it in a way that you are pushing down the spindle on a downward spiral motion. By doing this, inserting the spindle initially without trapping air becomes easier. The distance between the bottom plate of the spindle (circular plate) and the lip of the bearing housing assembly should be about 1 inch in my experienced. It is a must that before doing the whole process, the level of the housing (vertical)is optimum.
If the sidewalls have oil, and if the spindle is not thouroughly clean, then you will get the situation that you described.
According to the instructions you are to full the oil to the lower journal (as you did) and if the sides are clean then insert the spindle and let it seat itself, it will take from 4 to 8 hours in most cases and even longer in others but DO NOT spin or push down on the platter (the instructions state this) just let it do it by itself. If you have any more problems then I would suggest contacting Chris Brady again he is very helpful.