Yeah, didn't mean to leave you hanging, but it sounded like most of your questions were answered (material, bearing fit..). I agree Codered, lets see that big old block of aluminum
So, how far have you gotten on the design? If you haven't already done so, I would draw it out on paper or in cad just to make sure you have everything accounted for. The other thing to think about is the order of operations (what order you are going to machine each feature in). I have found that to be one of the biggest difference between someone with experience, and someone just starting out, and it makes a big difference. Specifically, you want to re-clamp your work piece the fewest number of times as possible. If you do re-clamp, you want to work to an accurate reference. For example, on that big block of yours, make one surface as flat as you can, then measure everything from there, and make sure that surface is one against the table of your mill, or against your fixed vice jaw. I would also recommend squaring up your stock, and then marking out all your dimensions before you start. It's very easy to miscount cranks of the handle, and drill a hole in the wrong place; marking out lets you see if you are "on" or "off".
I had assumed that you were off working, if you have other questions, or are stuck, just ask, people are always willing to throw in their $0.02.
Not sure if this helps, but here is a link to some pictures of a dividing head I built when I was first starting out. The body is 2x2x2"
https://picasaweb.google.com/113058612034694188913/DividingHead?authuser=0&feat=directlink