Hi Brinky,

   The torque evener is not supposed to control end float.  Final end float is controlled by the drive shaft thrust washer.  Say that you removed the cork seal #763008 and had 0.010" total flywheel end-play with the drive shaft thrust washer installed and the torque quill tightened to the drive shaft.  This 0.010" should remain if all the torque evener parts are installed and totally tightened.  I'm not exactly sure what is wrong but it sounds like your drive shaft thrust washer is too thick.  To really know what is going on, you are going to have to take the primary drive apart so that the engine sprocket can be removed.  How do you know what thickness your drive shaft thrust washer should have?  You are going to have to measure your total flywheel end-play within the cases.  This total end-play should be 0.015" to 0.030" (I personally like the tighter end of the range).  The drive shaft thrust washer thickness is chosen that will cut this clearance in half; 0.0075" to 0.015" (again; I personally like the tighter end of the range).  By cutting the total end-play in half, you will be positioning the flywheels in their center of case position (assuming that everything else is O.K.).  It is critical that the large and small torque evener nuts do not come loose in service.  If they come loose, they can destroy your outer primary cover and literally become lost on the side of the road.  You will be stranded and very unhappy.  Liquid threadlocker on the nut threads will prevent them from coming loose.  Also, be sure to install the cork washer upon final assembly. 

   The torque quill's final position is determined by the step in the splined portion of the drive shaft.  The drive shaft and the torque quill must be in good condition with no heavily worn surfaces.  All parts have to be inspected to determine if a part failure has occurred. 

Thank you Steve,

Makes sense. The thrust washer must be too thick. 

Brinky.