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Airline hole drilled and tapped as well as pinion assembly put together. Took 7 tries to get the preload set right. Ended up on the high side of acceptable (35 in lbs). Now I'm having some clearance issues with the ring gear. Need to pull everything back out and do a little grinder work.
I believe that would be considered acceptable, but I would try bringing the pinion up/in and then reset backlash. See where that ends up. But write down where everything is at first! And be ready to try something else or go back..
Found parts truck for $350. Got what I need to swap the front to 8 lug. Came with Dakota digital cluster. Probably sell the cluster and whatever else I can save to get my money back out of it