Thank you all for your input. I guess I may not be descibing the symptoms well enough. I understand that we DO NOT want the axle ends in the Diff touching. I also understand that shims can be used to adjust clearances etc...
My problem being ( I think we may have a outer bearing placement issue)that even with shims etc installed, my problem is that the axle itself moves independant (in and out) of the bearing retainer even with the retainer bolted down tight to the backing plate and axle housing. We installed the outer seal and bearing all the way in as far as they would go and then installed the shrink collar. I will try to attach a photo of the axle. We have cleaned all of the brake fluid and hay out! It was in bad shape.
As in the picture, if you grab the bearing retainer and pull up, you can move it approx 1/8". I dont think that is right but that brings up the question, if you get it so it doesnt move at all, is the bottom of the bearing retainer going to rub on the back of the lug flange? Sorry for all of the posts today but I dont want to do this again or have issues in the future. You guys are great help!
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