Thank you all for your quick responses. As mentioned, this is a low-budget build, and an effort to just get this bike back on the road. As such, I discarded the idea of a belt drive for the time being. This is my first plunger and my first A10. I have an RGS project that gets most of the money, but not as much time currently (I seem to have more time than money right now)
Responding in somewhat reverse order:
John, I had only one cork gasket for the dynamo (but three or four different for the breather) and didn't see different thicknesses offered. I have another on order and will compare when it arrives. I will double check runout on the sprocket, especially after readind another recent dynamo thread.
Berger, currently no belt drive for me, but I'm inclined to do as you did and pack it out.
Bill, I didn't even think about moving the gear on the other end of the drive sprocket shaft. My pile of parts had a gear and shaft, as well as a set still pressed together through the inner timing cover. Taking that apart proved difficult, as the sprocket had spun and welded itself to the taper on the shaft. It became a somewhat destructive disassembly. I ended up using the shaft from the other gear, along with the gear from the fully assembled one and purchased another sprocket. I don't have a press, and had .a local shop remove the shaft from the unused gear and put the other gear on it. I had him use ~the same dimensions they had been. Your approach looks like the "right way" to address the problem, but in the absence of a press, I will have to think about it. If another gasket is thicker and fills the gap, I will take that route for the time being knowing that I may need to pull the timing side apart again in the future.
Again, thanks to all.
DJinCA