Mikeybakken , you wrote that when you tore apart "the spacer was not there", if you are referring to the #7 spacer that is seemingly not possible. The spacer , #7, that comes with the pinion bearing is what establishes the preload for that bearing. When you press the first bearing on, the inner race bottoms out against the shoulder on the pinion shaft, when you place #8 and #7 on the shaft and then press #6 onto the shaft the inner race of the second bearing seats against the spacer which seats against the inner race of the first bearing.......you should be able to hold the outside of the pinion bearing and turn the pinion shaft fairly freely......if not, there is a problem with the preload. I would suggest you remove the nut and pinion shaft washer , and the flange , the #5 spacer and check the ease of rotation without the flange installed. If it rotates freely without the flange you've narrowed it down to the flange/ seal assembly. The number five spacer allows the flange to press against the inner race of the bearing #6 and the retainer #4 should move back and forth on the flange seal surface with little to no interference. Send me a PM with an email address and I'll send you the pdf file "Servicing the New 3/4 and One-ton Truck Rear Axles". Its one heck of a lot better than the Shop Manual, in my opinion......