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just remembered...
Well, my upper reduction gear may not be the culprit. I just remembered it was missing a small flat ring of sorts that fits inside where the basket attaches to the gear. I think that would definitely account for the rubbing occurring past the needle bearing.
This means that the lower gear is likely sitting to far forward. Is there supposed to be a washer that goes on the pinion shaft before putting on the reduction gear? I know there's on after, before the nut, just not sure if there's one before the gear.
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