where did you get these numbers from?The constant for a 1/4" rod at 60 degrees is 1.1830" so if you can find that rod and use it, the distance between them should be 1.771 - 1.1830 = 0.588".
The dovetail width is the overall dimension I need to meet.What exactly are you measuring at 1.771"?
+1 on the tolerance for the dovetails. That is a precision dimension, not to be taken lightly unless you have a good use for scrap metal tool holders...In post #1 the drawing dimensions tolerances are screwy IMO. + - .005" for the dovetail width is going to leave you with pretty small chance for success. It has been my experience doing dovetails on both a mill and shaper that you need to hit +- .001 for the width dimension of dovetail unless you want your dovetail to be very sloopy. Once you have done a couple dovetails I think you will find you want to sneak up on your final dimension and try to take cuts of less than a thou at a time if you want a tight sliding fit. One thou difference can take you from just too tight to noticeably loose in my experience.