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I would move it out just a tad more and see if it will move the pattern to the outside of the tooth just a bit.
What's the backlash set at?
Also, don't forget to set the preload on the diff bearings...
When I set these up, I snug the adjuster rings just in slightly so that they're touching. I then set the backlash to zero, then absolutely lay down on the right adjuster to tighten it up. What usually happens is that you get about .008" backlash and the carrier bearings are preloaded correctly.
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