I've filed a little bit back on the shoe where the bottom adjuster fits and I can now bolt the disc on without it binding at all.
However I now have the same problem that was there with the car before I did any of the work - which is that if I back off the adjuster to the point where the wheel isn't dragging with the handbrake off, it will not lock the wheel when turned in reverse when the handbrake is applied - I can overcome the brake in the reverse direction by turning the tyre by hand.
If I increase the adjuster until I can't turn it backwards by hand then release the handbrake there is still a lot of drag.
This is exactly the problems was seeing a year ago on the car before the handbrake cables seized.
However the handbrake cables have been replaced, the discs and shoes and yet I'm still seeing the same issue.
I really can't understand this. The brake lever arm which pushes the shoes apart at the top pivot seems to be working fine and pushes the shoes apart by nearly 5mm at the top when the handbrake is applied with the disc missing, so there is plenty of action there.
Stumped and fed up with the whole thing and wish I didn't start any of this work. I just seem to be getting deeper and deeper into trouble.
Did I mention how much I hate drum brakes ?