68 442 axel

Um, is that an OUTER seal I see between the bearing and the axle flange?

That would be your problem, as there is no outer seal used, only the inner seal. You don't have the bearing pressed all the way onto the axle, since that seal is in the way. It also appears that you've bent the retainer flanges trying to get this to seat. Sorry, but time to take it all apart, flatten the retainer, and reassemble it correctly. This is where the Chassis Service Manual would have saved you the time and money.
Now my question is do you have the correct bearing for the early O-Type? The early ones use a RW507C sealed bearing (sealed because there is no gear oil going to the bearing due to the inner oil seal) and the later ones use the Timken Set9 tapered roller bearing (open bearing gets oiled by the diff fluid).
Last edited by Fun71; May 15, 2014 at 04:23 PM.
Not too hard. You have to get the splines on the end of the shaft aligned with the side gear in the diff, then the bearing is a slightly tight fit going into the end of the axle tube. It should go in at least partway, then the retaining flange will push it in the rest of the way when the nuts are tightened. Make sure there isn't any crud or any dings in the end of the tube where the bearing sits.
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