I intended on leaving an 1/8" sticking out and let that plate and the flywheel pull it down to mate with them. When I got through installing the main caps this is what I had, it went beyond the block surface. Will this be problem? Now would be a good time to correct it IMOP. Thanks for any replies.

If now is a good time, "now" is the best time. I say correct it ..

Are you talking about the seals? Isn't the excess trimmed off? Here's a summary from the Monroe book -

Put silicone sealant in side-seal groove

Install cap and tap in until 1/8" from bottom

Oil side seals and insert in groove, push to bottom of channel

Snug cap bolts

Insert nails, press or tap down until flush

Trim ends of seals, leaving 1/16"

Don't know if that helps but it's in the book, but with more detail

I'd trim it flush and put a sealer of that seam before you install the gasket. I did that this morning on an engine.

Chuck

I was wondering if the rear main seal is pushed in too far? It's sitting right on the edge of the beveled lip or chamfer on the rear bearing cap.