Bought a dial indicator set and measured the pinion to ring gear lash and overall lash. Add a 0.025" shim under the inner pinion bearing to move the pinion gear toward the ring gear. Differential side bearing did not have any shims and I could not measure any play in the differential side bearings. I also added shims under the differential side gear thrust washers.
Differential run out = 0.003" (spec = 0;005")
Pinion gear shim = 0.025"
Differential play = not perceptible (spec is 0.008" pre-load)
Differential drag = small (no spec)
Pinion to ring gear lash = 0.015" (at 2" from pinion center = 0.03") (spec = 0.006" - 0.012")
Pinion to axle hub = 0.0515" (at 2" from pinion center = 0.13") (no spec)
Added shims under differential side gear thrust washers = 0.025"
I'm calling this this "adjusted". It now has all new bearings except for the pinion pilot bearing and wheel bearings. There is no doubt that the pinion and ring gears are very worn. I could not get an ideal contact pattern on the ring gear. The pattern is very large covering most of the ring gear tooth. It appears that the dome shape of the teeth is flattened. This is a problem if the differential will be under a lot of load for ant length of time. This is because the pinion is contacting the ring gear teeth on the edge...