I'm not saying that the Volvo seal isn't a good one as it very obviously is and is recommended by lots of users. What I am saying is that it is designed as a seal and not designed as a support or as a bearing to centre a shaft that is not lined up dead centre in the sterntube as it should be. It might well fulfill the support and bearing role as well, but it was not designed to and may not have a long life if it does. In your case as I understand it the shaft IS supported and so the Volvo seal should have a very long life.
The spring balance method that I referred to BTW is not a bodge but is the way the books say the alignment job should be done. The simpler method is also mentioned which is to hold the shaft in a central position with a wood block, then start the alignment process. The fact is that the shaft should run straight and true right down the centre of the sterntube, if it doesn't then something isn't quite right. I say isn't quite right because the clearances in this case don't allow much margin for error at all.
My other comment is that I don't want to encourage someone to do something less than a proper job and by that I mean what a marine engineering company would call a proper job and not put their liability insurance at risk of a claim. I might choose to take a risk myself, that would then be my choice, but certainly wouldn't want to advise someone else to without all sorts of caveats!
Let's hope the OP lets us know what the outcome is, I hope it doesn't cost too much time or money.
-------------------- Sermons from my pulpit are with tongue firmly in cheek and come with no warranty!