I just finished this project so here's what's at the top of my mind for your problem.
Are you able to rotate the top half of the hub from free to lock and back? If yes, try putting the two halves together with the allen head bolts and see if you can rotate the hub with the hub assembled but out of the rotor.
If yes, then we know the problem isn't your hubs.
Try removing the hubs and turning the driveshaft - does the axle move? If yes, then you know the problem is somewhere in rotor/spindle.
Are you able to insert the hubs fully? If no, then there's likely something wrong with your spindle/hub rotor parts or assembly.
Recheck your assembly, it should be (from axle):
axle, spindle, shield/caliper mount, rotor, hub
spindle has a rear seal, rear spacer, rear bearing.
when you install the spindle/caliper mount, is the spindle flush against the knuckle and the mount flush against the spindle? if not, you probably have a spacer problem or the mount is butting up against the knuckle.
the rotor assembly should be: rear cap, rear bearing, front bearing (yes they are different sizes), front cap/shield (spindle nut w/index lock (mine was just a raised bump, diagram shows a little pin), spindle lock washer, spindle nut w/o index lock.
At this point, if you're sure you have the assembly right, then seems to me the only answer left is wrong part in there somewhere.