Differential Housing

Spread gears until drive flange can just be turned. 

1. Press on side bearings. Install both differential side gears with thrust washers and shims. Ensure concave side of thrust washers face gears. Using drive flanges, center side gears.
2. Mount differential assembly in vise. Install spreader tools. See Fig 1. Spread side gears by tightening spindle until drive flange can just be turned. Remove drive flange and install pinion gears. Remove spreader tools. Install pinion shaft and lock pin.
   Fig 1: Spreading Differential Side Gears

   Courtesy of BMW OF NORTH AMERICA, INC.
3. Install side gear gauge plate and spindle. Hand tighten spindle. Mount dial indicator on differential case. Zero dial indicator. Tighten spindle until thrust washer is pressed flat. See Fig 2.
4. Loosen spindle. Turn side gear and repeat measurement at various points. Repeat procedure on opposite side gear. Adjust specified clearance by installing thicker or thinner shims.
5. Shims are available in 0.002" (0.05 mm) increments. Remove gauge plate and spindle, pinion shaft, pinion gears and side gears. Install shims of calculated thickness and repeat procedure.

Fig 2: Measuring Side Gear Clearance

Courtesy of BMW OF NORTH AMERICA, INC.

Measure clearance at various points.