Will,Did you replace the oil that was lost in the end of the axles when you removed the hubs?There should be a 1/4" plug on the end of each axle or on the hub housing where you can add the extra oil needed. Probably about a pint and a half on each end.IHTHDallas
Just my way, but I repack the bearings with grease before re-installing them. then make sure rear end lubricant is full to bottom of fill hole in the differential. I feel that this insures adequate lubricstion to the bearings until the rear end lube works it's way back out to the bearings. JackNote: this is just my way, and not based on anything "official".
PP I think your bearings are too tight. I will check my manual tonight and make sure, but I believe that all of your steps are correct, BUT I think there is one last step in that you back off the nut by about 1/8 rotation. I would not drive it until someone confirms the last step.Most tapered bearings want to have some clearance. Jim