The guides are probably worn a bit "eggshaped", and your mandrel tightens on the non-worn area, making it seem like there is less wear than there actually is.
On one hand, for a slow-turning "side valve" engine, it will probably run for years with no issues from the worn guides. On the other hand, if you are restoring it to "as new" you may want to replace the guide, if they are available.
If not, an automotive machine shop should be able to easily (and at low cost) bore out the old guides and press new aftermarket guides into them. They do stuff like that every day.
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Today's Featured Article - Tractor Profile: Allis-Chalmers WD45 (Gas Version) - by Staff. Beginning production in 1953, the WD45 had the same general look as the WD tractor which was produced earlier - but was much more powerful. This was due to the new 4-cylinder "Power Crater" gasoline engine with a 4 x 4-1/2 inch bore and stroke. Some people feel this was one of the most significant tractors offered by Allis-Chalmers in those days. Nothing in its weight or power class could match its performance. In 1954 they began offering the WD45 with the new "Snap-Coupler&quo
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