So I am at the point where I am getting close to purchasing parts for my 2056 build. I am curious as to the best method for determining bearing size needed.

I measured the crank with a caliper and it is very close to stock specs. I would feel better doing the measurement with a micrometer for greater accuracy.

Do I just buy standard bearings if the crank falls with in stock specs? or if the crank is at the small end of tolerance do I see if .01" bearings still allow clearance?

Do I need to have a shop install the new brearings in the case assembled( so they are torqued) and check them with a dial bore guage for proper clearance?

Take your case into machine shop. I doubt that you have the tools or skill sets (most of us do not) to make that determination. Do your plans include balancing the engine? Then take your flywheel, rods and pistons with the case, also

So Shop would assemble that old bearing in the case measure and compare to the crank measurements to determine if oversized bearings are needed? Should they also check new bearings when they arrive to verify clearance specs?

Skills seem to be fairly attainable with input from the board it is the investment in tools and confidence that I am doing it correctly that seem to be the sticking point. I am plannning on having things balanced.

You need to measure 2 things:
1. The crank size (caliper or micrometer) and roundness (dial meter while rotating the crank). While at it, take the middle bearing out the case, rotate the crank and check with the dial meter that the middle doesn't move up and down (bent crank).

2. remove the bearings from the case and close it and torque the bolts. Then measure the inner diameter of the journals where the bearings were. Most wear should be at the middle bearing.

Bearings have 2 measurements: The OD in steps of 0.5mm and the ID in steps of 0.25mm.

For tools:
http://www.harborfreight.com/1-inch-travel...icator-623.html
http://www.harborfreight.com/multiposition...tment-5645.html
http://www.harborfreight.com/3-piece-micro...-set-66512.html

And for the journal measure
http://www.harborfreight.com/hand-tools/sp...e-set-5649.html

Great info Thanks.

do the saddles in the case really wear much? the bearings don't move do they?or is it just wear form vibration?

They do wear (vibration & slight movement under load) and the case distorts from load. I recently had 3 1.8 cases that when torqued together the center bearing webs did not touch in the middle.
It is not uncommon to need to align bore the case and have the cylinder spigots resurfaced, so they are flat and even with each other.
I have always just taken the case to a machine shop that knows type 4 cases and had them check and machine if needed. I also always send the crank to get mag checked and measured and usually polished.
If you have to have the case align bored or the crank machined you need to find out what bearings sizes are available before machining is done so you don't end up needing bearings that are not available.

Jim

See the case in my rebuild thread in my signature.
I agree that you should first measure, then shop for bearings and only then cut the case.
oversize bearings get pretty expensive since most cases today need to be machined.