The conversion kit for the old iso mounts DO fit in the tube and the original longer tube doesn't have to be machined. i went through the same thot processes as you, there was no way in hell it was gonna fit, but, it did. Don't do like i did and buy the conversion, think it aint gonna fit, then buy a $110 Mk III iso tube (see for sale section). it does fit in the original tube. I used so much U.S. Navy-taught profanity and even that didn't get the iso motor mount in the frame. i actually called another member after PM'ing him......sometimes you just need a sympathetic ear and to calm down; which is hard after cussing and f'ing with it for 2 days. Work with putting the mount in the frame, clear of the bolts and work it one side to the other until you can get the through-bolt in the left side to hold it, then line up the other side till bolt goes through. Like my bud from AN told me, you'd swear to god that you need a Frame Spreader to get that mother in there. it'll work. Don't search this site too much either, you'll mess yourself up!
My front tube (1969) also had an almost invisible separate sleeve pressed INSIDE the tube, hard as hell to see; which....has to be cut out. It's in 3 pieces; 1 on each end and a longer middle section sleeve. make sure you can distinguish that they are in fact there first. i took a hack saw blade, nearly level to the inside of the tube until i got an edge, then took a cold chisel to it to get it out. i just did the ones on the ends. as far as the iso's themselves, use real slickery non-petroleum lube. the instructions say you can do it with your thumbs but i must have really weak thumbs; i don't think it's possible. i'm a puss maybe. i took it to a local hot rod shop and had em pressed in. make sure you don't put them in backwards.......adjustment side to the right. SOMEBODY ELSE JUMP IN IF I SAID ANYTHING WRONG. I got so pissed i wanted to sell the dam thing, you'll be happy as when your first child was born when you get it done though!!!
I still haven't done the rear iso yet! shit, i'm gonna be cussing and bleeding again this winter......