Hi Al,
Landys eh!! Are you sure you have fitted the correct stub axle (the bush should be fitted in the stub when you bought it) (I'm working on memory a bit here, although I think that the brass bush one is correct for your vehicle - the other has a pin/ bearing arrangement -- but I think that's from 300TDi on).
I did this job on my wee pick-up - you should be able to get the circip on and it should spin freely (I know you know this -- but I don't think it will free up if you drive it). I'm pretty sure I made the same mistake ---- the following may sound obvious, and I had words with myself after I got to the end not being able to get the circlip on and having a sticky wheel.
-- remove the whole shooting match back to the CV joint & make sure that you have "pulled" the CV joint out - this will ensure you can get the circlip on (it should retain that 1/4" or so "float" throughout the process).
-- when you put the stub axel on make sure you tighten the bolts 3 o'clock, 6o'clock, 12 o'clock, 9 o'clock etc. Tighten progrssivly and finish to the torque setting (in fainess I guessed the torque setting!!) This should stop the brass bush from rubbing on the drive shaft. After this it should be sweet.
Give me a shout if that doesn't work.
Jamie