So i am setting up the ring and pinion in my dana today and i run into an issue with the inner pinion shims. I try to set up my inner shim pack and they wont lay flat in the hole, they want to "bubble" up.They act like they are too big around. So i pull them out and measure the OD on them and they measure about 3.507
"-3.505". I then measure the bearing cup and it measures right around 3.500". This is a richmond install kit. Has anyone else had this issue? It seems obvious to me that my inner pinion shims are too large. Or am i missing something?

I guess nobody else has ever had this issue. I think my plan will be to cut a notch from the shims so thay can lay flat(as shown in my totally awesome visual aid). so long as they dont overlap themselves. i dont think this will be a problem.

I have never had the issue but I would do exactly what you are proposing.