You have it right. The pinion assem. is locked in by the flange up against the brg. There is a thick cork gasket that fits in the gap. You can adjust the pinion depth with the shims to get the best gear pattern without the gasket. Then lock it up with the gasket behind the flange. If you can't get a gasket for it you can use a heavy bead of RTV. Let it set up good before you fill it with lube.
George
Last edited by Wrenchbender Ret.; 11/09/2023 3:33 AM.