'37 Flathead rebuild questions

[cretin]

I recently got my "37 Flathead back from the machine shop. I'm working on assembly now, and as a Flathead rebuild virgin, I have a few questions.
I wouldn't be surprised if more questions arise in the future, so I thought starting a thread would be a good way to get the answers I need.

My first question is about the rear main seal. I'm a little confused. I have the inserts shown in the attached image. Nothing goes on there? I have a fel-pro gasket set for the engine, and it says it includes 2 front crank seals, and 2 rear main seals. I have 2 shorter, wide rope seals, and 2 longer, thinner rope seals. Do the longer thinner ones go in the groove of these inserts? From what I've read it seems that nothing goes in there, that seems weird to me, but I don't know. My gasket set supports a range of engines, so maybe those seals are for a different application?

Second question is about connecting rod bearings. Full floating bearings, standard size. My crank was not ground, only the journals polished. I forgot my nice caliper at work, but according to the one I have at home, the rod journals are at 1.985, and the ID of the bearing is 2.003, and the thickness of the bearing measuring 0.11. The books I have say that clearance should be .0017-.0036. But whats annoying is that they don't say what you are supposed to do if you are out of spec. The difference in my measurements comes out to .018. So what is the correct procedure to correct bearing clearance? do I file the edges of the bearing to close it up? or is there more to it then that? I've never dealt with full floating bearings before, and haven't had luck finding the info.