setting the lash in 8 3/4

Tighten cap bolts by hand then screw in adjuster to take out all lash in the gear. Torque one bolt on each cap and set backlash to 1/2-1 1/2 thou (basically none).

Now this is the part I didn't understand at first, your tightening only the one adjuster to "push" the ring away from the pinion to get backlash and tighten (preload) the side bearings in one operation. Torque the other two bolts and recheck backlash.

There is a bit more to it which the manual states ie rotating and checking in 4 spots etc..