Since you mention the spindle itself is quite loose; are there significant black spots on the spindle itself? this indicates the spindle itself is too loose. I had a sram red bb30 crank that was way too loose.
My hollowgram and a few FSA bb30 cranks i've came across have way tighter tolerances.
On my 29er i use a rotor 3d+ crank with the bsa30 cups. Perhaps you can use these as a test, they are fair priced and come with the wrench to install them.
One important thing on the spindle; do you feel the machine-path of the lathe on the spindle on the actual contact-area of the bearings? if this is the case; that might cause your torn bearings too; since the spindle is sloppy in the bearings, the grooves are followed by the bearings causing them to mis-align. Contact areas of bearings in relative high load/low rpm applications need to be polished or at such a tight tolerance the bearing is unable to 'walk'
The spindle tightens up once you get it on there, and set the preload. That just tells me the center of the bearing centers the spindle, and the spindle shaft itself has a bit of a gap. The spindle is also anodized black, but does show signs of wear in spots. I think I am going to try the loctite on the the spindle. I think that has to be the problem. Can anyone suggest which loctite to buy? This link list the different types. I am thinking 640 or 660. http://www.ebay.com/itm/LOCTITE-Retaini ... 92aff5d07f
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