Thanks for the replies.. Let me see if I can address some of them. First, I was told by the manufacturer back then, that you need to lean toward more back lash. They said a cushion of fluid is needed between the teeth. That is why I set the gears up with a B/L that was somewhat in the middle of the .008"-.012" that was called for.
Second, There is no noise at all when on power. Just when I'm coasting or more so when trying to maintain speed. It is louder when maintaining speeds. Coasting is quieter, but still there. Maintaining speed noise is more of an on/off type noise (whine/whorl). Coasting is a gear whine noise only.
Third, I agree something has worn or moved. I will pull the cover today and inspect. I'm hoping to not have to change gears. But if I have to, I'm wanting to wait til this winter to do it as changing gears in a Dana isn't as easy as a drop out rear. I'm also thinking that because it doesn't make noise on the power side that it can't be too serious at this time.Also, what about setting up a gear set that has been used? I've never had any luck doing that, but have any of you??? What do you guys think???