wblteen, I have not had that problem.
I'm sure you've looked at this by now...
http://www.spudfiles.com/forums/viewtopic.php?t=300&
You can see that I also had a gap when I sleeved 2"PVC to make golf ball barrels. It might not show up in the photos, but I think the gap on my barrels was about half as much as the gap on yours. So I recommend trying it again, but remove a thinner strip of PVC from the inner pipe. With such a large gap, your inner barrel might not be able to lay evenly against the outer barrel.
Also, in the photos of your barrel, only one end is shown. What's happening on the other end? If the inner barrel sticks out from the end of the outer barrel, it can tend to pull apart. With your short test barrel, the effects of any distortion at one end of the barrel could have a big impact on the other end of the barrel.
Finally, is it possible you have an odd size GB? Or maybe a GB that is swollen or distorted from sitting in a golf course pond for too long? I dunno. May want to try a couple of different brands of GB's?
Random idea.......lately I've been thinking of filling the gap on my sleeved barrel with hot glue. To do this, I may try to preheat the barrel with a heat gun, then use a heavy duty glue gun with a high rate of flow. The primary benefit would be a tighter seal, meaning less energy would be wasted in blow-by. In addition, I think the hot glue would grip the ball and could serve as a hop up, giving the GB backspin and thus longer flight times. Mine is already a very good barrel, but I think it could be superior with a tighter seal and hop up. If this works, I'll post to the existing how-to topic.
Good luck!