After being advised that it may be better to remove the front "pips" on the stock of the LVSF to improve accuracy, I think I've bitten off more than I can chew.
I removed the "pips" and the barrel just sat in the channel. I sanded with a 28mm dowel and paper. The barrel still layed on the base of the channel. I sanded yet more. I've sanded a fair few milimeters off and the problem is still there and I don't want to take any more material off as the front swivel stud is now proud of the channel. The barrel would rest on that if I screwed the stud in completely.
I have noticed that the recoil lug is tiny in comparison to the channel it sits in it is probably 1/2" deeper 1/8" wider and 1/3" deeper than the lug itself.
I am not competant or have the tools to completely bed the action, but if I build the lug channel up with resin, would this give me a better chance of getting the barrel clear of the channel and improve the accuracy??

Or do I bin the stock and get a new one?

If you are not experienced at bedding just find a smith that does it for a living. You will be happier in the long run. You could just order and H-S precision stock whick would not be much difference in cost as compared to pillar bedding.

I guess the first question is; Have you ever glass bedded a stock? If so, my recommendation is to run a layer of tape from the breech to a point past the forearm. Then, wrap tape around the barrel so that when resting in the stock, the barrel appears at half-depth in the barrel channel. Tape off the bottom, sides and front of the recoil lug so that it has clearance except at the rear where it should bare on the bedding compound. At this point, glass bed the receiver and the barrel. When it sets up remove the tape and the barrel should be floating and the receiver should be at it's proper position in the stock.
If you have never done this, take it to a competant smith or a shooting buddy who has done it.