1)Mount VW297 into the differential tighten bolts securely.

2)Install the right side plate using a gasket, and its bearing along with the 297 tool.

3)Install the spacer you used to measure the width of the carrier on the ring gear side. (Between the bearing and the gear flange.)
4)Put on the remaining side plate and tighten the nuts on both side plates to 22 ft. lbs.
5)Install the adjuster plate with the handle. This goes onto the left side plate with two nuts.
6)Turn the transmission case so that the left side is down.
7) Lock the pinion shaft from turning with a clamp or other means at front of housing.
8)Install a dial indicator to ride above the center of the plate that is attached to the side of the ring gear carrier. Have the indicator stem resting on the plate, this will measure side movement of the ring gear.
9)Install another dial indicator to measure backlash - this reading taken from the arm on the plate attached to the end of the ring gear carrier.
10)Pull the differential and ring gear all the way down and up against the spacer and bearing.
11)Back off the screw adjuster until it isn't pressing against the differential - now adjust the dial indicator to compensate for the spacer, (example: If you're using a 2.5mm spacer between the gear flange and the bearing, preload the dial indicator or adjust the dial to this amount.)
12)Now by turning the screw adjuster you will be moving the ring gear into mesh with the pinion gear. This amount will be recorded on the dial indicator (the one measuring side movement). At intervals loosen the screw adjuster and check backlash on the other dial indicator. When backlash falls within the limits, you will have a correct reading of the space between the differential flange and the bearing. This will be shown on the dial indicator mounted directly above the differential. This is the exact measurement (less preload) needed on this side (the ring gear side). The other side will be calculated as follows:
Take the distance you determined that was between the inner races of the differential side bearings and subtract the width of the differential (the ring gear carrier at the bearing flanges). Then subtract the ring gear side measurement you just made. This will give the measurement of the other side.
These thrust rings that are fitted should be (in most cases) .003" oversize. This will give the differential bearings a preload of .006". Thrust rings are available in thickness of 2.8mm through 4.Omm in lmm increments. Shims are available in .25mm thickness. Ring gear adjustment on IRS differentials is done using shims behind the outer bearing race on the side plate. A backlash reading can be taken using an arm fastened to the differential axle shaft. (See special tools.)

INSTALLING THE TRANSMISSION INTO THE CASE

Note:Adjust pinion first.

1)Get two old engine mounting studs (use the ones threaded on each end) and then screw them into the pinion retainer. On older models that use the 4 bolt retainer, this will help guide and align the pinion and retainer.
2)Place the pinion gear shim over the ball bearing.
3Push the selector fork for reverse (and its sliding gear) onto the reverse lever, if not already done so.

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