Directly from HELM. It seems that everyone has a different answer for this one. WHEEL BEARING ASSEMBLY AND ADJUSTMENT
1. To reassemble the wheel bearings: drive the outer bearing cup into the hub, replace the inner bearing cup, and insert the repacked bearing.
2. Install the disc or drum and outer wheel bearing to the spindle.
3. Adjust the bearings by rotating the hub and tightening the inner adjusting nut to 50 ft. lbs., then loosening it and retightening to 35 ft. lbs. Next, back the nut off 3/8 turn or less. Turn the nut to the nearest hole in the lockwasher. Install the outer locknut and torque to a minimum of 80 ft. lbs. (108 Nm) on 1980 models, 160-205 ft. lbs. (216-277 Nm) on 1981 and later 1/2 and 3/4 ton models, and 65 ft. lbs. (88 Nm) on 1 ton vehicles. There should be 0.001-0.010 in. bearing end-play. This can be measured with a dial indicator.
4. Replace the brake components.
5. Lubricate the locking hub components with high temperature grease. Lubrication must be applied to prevent component failure. For 1/2 ton 1980-82 and 1980-84 3/4 and 1 ton models, install the spring retainer plate with the flange side facing the bearing over the spindle nuts and seat it against the bearing outer cup. Install the pressure spring with the large end against the spring retaining plate. The spring is an interference fit; when seated, its end extends past the spindle nuts by approximately 7/8&inch;. Place the inner clutch ring and bushing assembly into the axle shaft sleeve and clutch ring assembly and install that as an assembly onto the axle shaft. Press in on this assembly and install the axle shaft ring.
You can install a 7/16 in. bolt in the axle shaft end and pull outward on it to aid in seating the snapring.
6. Install the actuating cam body in the cams facing outward, the outer clutch retaining ring, and the internal snapring. Install a new O-ring on the retaining plate, and then install the actuating knob in the Lock position. Install the retaining plate. The grooves in the knob must fit into the actuator cam body. Install the seals and six cover bolts and torque them to 30 ft. lbs. Turn the knob to the Free position and check for proper operation.