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8 3/4 pinion depth quandary

Hemi Rebel

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Im in the middle of a gear swap in an 8 3/4. Going from 56's to 3:55. There is a 259 on the face of the pinion gear. Im guessing it means 2.590. I measure 2.764 from the pinion face to ring gear center line. Am I doing something wrong or does it need .174" shim? That seems excessive to me.

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