Quoted: Another idea that I had was to get one of those 3 stone cylinder hones ( for lawnmower engines) and workin on it a little at a time with that until it just barely fit.
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No flame intended, but I don't think that's a very good idea. The area that has to be cut is so narrow that the hone wouldn't be properly aligned and hone arms would be flopping around would prolly cut a tapered hole at best.
This is an area that a person with good file skills could prolly work wonders. If I had to do it with a file, I'd use a rounded swiss pattern fine cut (#0) file, and take small even cuts all the way round the nut. One the first pass, I'd just file off the finish. Then coat the raw material with Dykem or just use a sharpie to ink it. Then file just enough to remove the ink. Keep checking the fit. Ink the part before you try the fit to see where it rubs. Patience is the key here. It may take a couple of hours making small cuts.
To answer the question. Obviously, you'd need enough clearance to fit over the barrel. I'd think a couple of thousanths (.002") for the mechanical fitting. Then you'd need to add more clearance for the material of the nut, to compensate for different rates of expansion when heated. Another .002" for that if the nut material is steel or .004" - .006" if the material is aluminum. Use .010" as a max in any event. If ya don't have a way to measure the clearance, the nut should slide easily over the barrel and rattle a small amount when slid all the way down to the ring on the barrel while the barrel is off the receiver. Once you get to the point where you think it's right, re-ink the contact area and try to screw the assembly to the receiver. That'll tell you if you're off center. If it's hard to screw onto the receiver (you'd needn't torque to spec at this point), check the rub marks , and that'll tell you where you need to remove a little more material. I don't think this is a super critical clearance issue. You just don't want so little clearance that a rapidly expanding barrel won't crack a too tight (in diameter) nut.