JF,
you are removing shims to have the pinion away from the carrier and you add to bring it towards it. All honesty this sounds like a bad job again, you have the depth of the pinion either written on it or it comes on a piece of paper, you set that off first using shims behind the inner bearing on the pinion shaft. Then when that's done you shim the carrier bearing outer races to get the pattern right (using the marking compound). If you want to get really fancy with it you use setting bearings and you add or remove depth on the pinion as well when you set the pattern (but if you stay with the given depth you shouldnt have to).
Also, the shims are hardened so making shims out of sheetmetal is not going to work (not sure what they are making them out of), they will cause the pinion to lose preload and eventually cause failure - you can buy shims as a set in various thicknesses (i can't remember if the install kit comes with any).
Sharp,
For some reason, with my setup, what it looks like is that with NO shims, the pinion contacts the locker. With the first job, it seems like the shop fixed this little issue by taking the pinion to an axle grinder, hence most of the damage you see on this pic:
If you think about it, for that much damage to be done to the pinion, the locker should look A LOT worse than this:
So they are adjusting the pinion a bit forward, and then looking at the thread pattern. To be honest, since this is the local ARB distributor, at least I will have a warranty on the job done... And they did seem to me that they knew what they were talking about, so I feel a bit more at ease... Anyway, we'll know for sure come Monday!
The markings on aftermarket gears other than spicer gears are a joke, you pretty much set pinion depth by the pattern. Also the pinion should not even come close to the locker unless it ends up riding back and forth that is the only time it ends up with a wear pattern like that. If your carrier bearing were that bad that it allowed that much play to touch the arb locker it would have howled something fierce definitely a whole lot louder than tire noise
That certainly sounds like the sound I was getting from the rear after the first install; I then took it back to the shop, and it seems they grinded out the pinion to "fix" the problem.