Thanks, but that crossed my mind too. Plenty of clearance between the gear and the bearing. Plus it's all quiet when I have just the driveshaft and pinion gear installed. Then with the large gear installed, the dry meshing sound returns as every tooth meshes while turning.

I went ahead and tore it back down and triple checked everything. Bearing preloads, pinion height, pinion gear runout, lash, bearings, everything. Only thing left is to run it and give them some time to break in.

Do you have the date code on the box from that set up gears? I just installed a set and they seem to sound like yours.. but the case is still not full of drive fluid..

I tossed the box out while cleaning up.

I installed 2 sets yesterday no noise.

I have about 5 minutes on mine now and still in 1 peice.
Just drove from the ramp to my slip. It appears to be a little quieter now just in that short time. Hopefully get some run time this weekend and check the magnet.