Well, if I had it, I'd go through it just like normal but, I'd remove the hand spring (after fitting) and heat treat the hand. I would also take the time to check the cyl ratchet and correct any misaligned teeth (for consistent timing purposes). Stud or bush the hammer to keep it centered. Set it up for dry fire. Then, if I got real picky, I'd check the volume of the chambers and adjust all of them to the largest of course. (I mean it's a commemorative Colt for crying out loud!! Show it some respect!!)
Of course to answer your question, no matter how well the arbor fits (I'm sure it's short), I'd set the bbl/cyl clearance to .002" and the timing to factory perfect. The trigger would probably get an over travel stop as well.
Then I'd remember I can't shoot bp where I live (not outside and only smokless in ranges) so I'd sell it, buy me a 2nd Gen Dragoon and set it up exactly like the Navy but with a Kirst gated conversion and shoot the heck out of it!!!
Yap, that's what I'd do.
Mike
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