In years past, the drive shaft and bottom end of the crankshaft were exposed to exhaust, hot water, steam, acids from combustion, and other nasties. That caused rust and wear of the shaft splines, crankshaft seal, and problems with exhaust gasses getting into the water pump, etc. It was a very good thing when they began isolating the shaft from the exhaust by running it in an enclosing cast-in tube. That spacer you left out is part of that system, and needs to be in there. Without it, exhaust blows up the tube, causing the very problems it is supposed to be preventing.