Major wheel bearing setup problem

Your outter bearing spindle diameter needs to be 1.377. The inner bearing needs to be 1.189. If any of these surfaces are lower than your bearing will not ride on the spindle correctly. When bearing go bad they often heat up this area and it becomes undersized. Sometimes they swell up from the heat and cease themselves. You should also do a run out on the spindle. Any more than 6 thou, your spindle is shot.

You can't turn the spindle down b/c if you do that than your moving the rotor in whatever you cut down and that will offset the how rotor sits in the caliper.

I'll mic out a flange tomorrow for you.(at home now) Worn flanges are not uncommon either.

Thanks Dan,

 I'll check the measurements tomorrow. The spindle is new, so that won't be a problem.

Alan

 I sent my setup tool, and dial indicator to Ben (Cthulhu) to use for his bearing setup. He found out that it wasn't the housing, it was the TOOL that was off. He used a shim after the bearing, and before the nut washer, and it worked fine. I know this sounds weird, but anything is possible with these cars.

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If this is the case I would be checking the one you have already done as well.  I'm just presuming that the threads cut on the setup tool have not been cut properly and when you torque up to the 100ft/lbs, all you are doing is tightening the nut to the end of the threads on the setup tool. 

Did you check the spindle end play on the one you've already done after you had packed the bearings, installed the spindle and tightened to 100ft/lbs?  If the set up tool is wrong I would be inclined to say that it is set up wrong and maybe the bearing cups have not been seated correctly.  I had to replace a spindle when I did mine so I turned down the old one (so the bearings had a clearance fit rather than interferance) and used it as a set up tool when dry fitting and checking end play.  You say one of the spindles is new?  Maybe use the old spindle as a setup?