Just got back from work.
Thanks for the replies and suggestions. I think that shaving the waterblock would be the best solution to this. I'm not too keen on adding another piece of copper to compensate for the gap nor do I like the idea of removing that shim.
Wondering if I can do it with a dremel tool?
...hmm, I'll have to think this through.
Thanks again...mind if I stick around this place and make it one of my homes