bcjm,
I just went through this repair, so I will try to help, but please read bhap's first note, it is spot on and will help you understand what is going on with the king pin.
I had trouble sanding the compensating washers, I was luck enough to get one that worked for me from my local independent. The trick is to use a compensating washer that is small enough to allow a tiny amount of end play (the BBB specifies the amount of play, but I found it impossible to measure: the key is to make sure there is enough to prevent any restriction in the axial movement) in the king pin, after proper torque is applied to the retaining nut. This will be by trial an error on your bench. Once you have that set up properly take it apart and install it in the control arm. The book would have you use a special alignment tool to line up the upper and over bushing carriers and then install it, but I took a shortcut and installed the bushings (lower first) along with the king pin WITHOUT tightening the lower retaining nut. Once assembled I then torqued the nut.
Hope that helps,
g
'64 230sl, fully sorted out...ooops, spoke too soon