One of the bearings hadn't seated fully so the screw on the end of the lay shaft had required some packing to secure it. I decided to remove both the bearings and try and rectify this, not realising the bearings had been glued in place. Long story short, I ended up damaging one of them, so bought some replacement ones from Ebay.
I successfully removed the small ridge which was preventing the bearing from seating properly but then found that when I tightened down the screw on the end of the lay shaft, the whole shaft seized. This turned out to be due to a difference in the size of the inner ring on the new bearings as opposed to the old.

The old bearing is on the left, new one on the right. The difference is minimal but still enough to cause the inner ring to bind. Something to watch out for if you ever replace the bearings.
To overcome this, I opened up the hole in the motor support to 13mm, so that there is clearance for the new bearings.

This picture also shows the witness marks caused by the centre diff rubbing on the motor support. Has anyone else noticed this on a running 222

I'm hoping this was just an alignment problem and easy to rectify when I start the rebuild.
Adrian.