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I also went to a spool and replaced all bearings in my 8.75
they turn but are very stiff.

I would question this before the new axles. I only say this because you don't sound sure of what is going on. Did the pinion turn freely after changing the pinion bearings,then it got hard to turn when the spool was installed? Did everything turn freely before the axles were installed? Just asking to see if you tried it this way as things went together.
Keith

Keith has a a point, OP what third member casting number are you using, 741,742 or the dreaded 489 with the crush sleeve? it makes a difference

iT'S A 489 with the sleeve to elimante the crush sleeve. I found part of the problem the counter bore in the new drum was tight up against the backing plate. So it looks like I may have to shim the drum out a bit from the axel flange. The assembly is still fairly tight even with out the drum. I also guess my lack of experince doesn't help either. I just expect things to turn more freely