What did I do wrong?

Well that depends on how you look at it. If you turned the diameter of the SG down, it would work in any742 case with any gear set?

I would agree with that! Due to the fact the carrier bearings were already replaced I thought it was best to attack the pinion seeing I was still in set-up for the 2nd time! The pinion was hard though and trimming the carrier would have been easier. We figured due to the machining of the pinion gear it was work hardened!