Hi Ric,
Do you still have the Albin gas engine or has #935 been converted to Diesel? How about the other end: regular prop or Combi?
When I replaced my cutlass bearing I also replaced the aft motor mounts on the Yanmar Diesel. They had fallen victim to a steady drip of salt water from a leaking exhaust, causing the rubber part to break away from the rusted metal, allowing the shaft to rub on the insides of the shaft tube.
I don't think a larger tube is a good solution. Good motor mounts, a good cutlass bearing, and careful alignment should cure the problem.
Hope this helps!
Peter
#1331 'Sin Tacha'