Thanks for the info. How much clearance does the displacer have around it? Mine has about 1/32" so the displacer piston is 1/16" smaller diameter than the bore.
I think your displacer bore / piston is a little on the small side, even if you have 1/32" clearance all around like mine, it means your displacer swept volume is very similar to that of the power piston. It might be worth trying putting ice cubes on the cold end whilst attempting to run - having that ratio closer to 1:1 makes for an efficient engine but it means you need a higher temperature differential. If it runs with ice, you may need to make your displacer swept volume larger - the only way will be to bore your displacer cylinder out, new displacer and new hot cap. Note, the clearance at each end should be small too, same as the sides, about 1/32" is sufficient.
If you have no leakage on the displacer end, the only other problem would be friction. If it's trying now, the bearings may sort it so that would be the first thing to try. Does your power piston (with bottom off power cylinder) fall through the cylinder under its own weight? If so, it should be ok, if you put your thumb over bottom of cylinder and try to push piston in, there should be strong resistance from a sealing point of view - (sounds like you're ok on that front)
On mine it was leakage. The water jacket on mine was an after thought, I got it running on ice cubes initially, then water but now I've sorted the leaks I think it should run without water - can't remember whether I've tried. Could try tonight.
Hope this helps,
Nick