The axle stub (the outboard end) is locked via spline and possibly a bolt to
the wheel hub. The relative alignment (centering) of the spindle that
indirectly controls where the stub is and that of the axle housing are
controlled by the trunion bearings and the shims used. If you use a bearing on
the outer end of the inner shaft, you may have a binding problem. That is why
there is no bearing there now.
On GM products, I have found a seal that is 1/2 the thickness of the original.
In now install two of them with the lips mounted in opposite directions.
Seems to work well.
Steve
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