And before you get too excited, check to make sure you don't simply have the seal off the previous bottom bracket jammed on the drive side crank. That does happen fairly frequently and it will also make your bearings bind when tightened. It is fairly obvious when you look at the drive side bearing and there is no dust seal, just the exposed cartridge bearing. Then when you look at the crank you see a metal ring on the crank axle jammed against the chain rings.
I did try using locktite and not tightening the crank quite all the way up. The locktite did make the crank bolt reassuringly firmer to tighten. But the result? Crank came loose in about 15 minutes of riding. Tried it twice. No success. The second time I was in a group ride and just before I pulled over to tighten it, I was left with a crank arm dangling from my shoe. Very odd looking and everyone thought it was quite amusing. Except me.
Looking around on the web led to no useful tips. People asked the right questions, but they didn't get the right answers. At least no useful answers for my issue.
Time to sit and ponder the problem. Since the crank arm is putting too much pressure on the sides of the bearing cups, that pressure has to be reduced. Looking at the crank arm, it appears that a very large hex wrench could be used to change the position of the crank arm relative to the position of the crank bolt. But what home handyman has a wrench like that? It's huge! With a little more ponderin' I realized that probably just holds the crank bolt in the crank arm. Nope, not the answer either.
It is really only the last turn of the crank bolt that pinches the bearing. Looking at the crank arm, there is plenty of extra material there. And huge clearance between the crank arm and the chain stay. So.... Why not grind down the face of the crank arm a bit? I probably have at least 5 mm extra clearance and only need to remove about 0.5 mm to get the pressure off the bearings.
May 30, 2010 Update: Still works just fine after quite a few more km and lots of bike switches.