Thrust bearing block position

Another question relating a thrust bearing block I have in my boat. I just poured new babbit in the thrust bearing, the ball bearings and collers appear to be fine, however when I put it back in my boat, I moved the bearing back towards the stern post. Now the bearing is running hot, which was not the case before I did the repair. Also the alignment appears to be good. I am using the bearing because I have a jack shaft with 2 univeral joints, to compensate for keeping the engine low in the boat. I am wondering if the block is getting hot because I moved it back. By the way, the temperature went as high as 160 degrees F after running at crusing speed for 40 minutes. Also is there a special type of grease that I should use?
I have a velvet drive transmission, and powered by a 135 hp Perkins engine, with a 1 1/2 inch shaft.

Discouraged, puzzled and desperate

Wayne