The below is from the Novac Guide. It is pretty good.
http://www.novak-adapt.com/knowledge...-rebuild-guide
Output Shaft Endplay
dana_18_endplay_checkHold the rear output cap on the rear bearing and measure the gap between the cap and the case with a feeler gauge. Add .010 to the gap thickness to obtain the thickness of the shim pack for the initial setting. (Note that the shims are available in thickness' of .003, .010, and .031.)
Install the initial shim pack and rear cap and tighten the four rear bolts to 30 foot pounds. The output shaft, gear, and bearings assembly must now be moved rearward to seat the rear bearing in the rear cap. The easiest way to do this is to use the end of a block of wood and a hammer and rap the rear cap (not the shaft). The inertia of the impact will seat the rear bearing. Failure to fully seat these bearings is a common occurrence, and stacking an unholy number of shims up to get endplay is not the answer. It may sometimes be necessary to install the yoke, speedo drive spacer, etc. and torque the yoke nut to fully seat this assembly.
Important Considerations for the Novak O-ring Seals
When installing the Novak intermediate shaft, install the leading o-ring after the shaft has entered the rear bore and then apply a coat of grease to ease its installation into its own bore at the front of the transfer case. Install the second o-ring and grease it as well. This is to minimize the risk of damaging the o-ring seal during this installation process.
Install the initial shim pack and rear cap and tighten the four rear bolts to 30 foot pounds. The output shaft, gear, and bearings assembly must now be moved rearward to seat the rear bearing in the rear cap. The easiest way to do this is to use the end of a block of wood and a hammer and rap the rear cap (not the shaft). The inertia of the impact will seat the rear bearing. Failure to fully seat these bearings is a common occurence, and stacking an unholy number of shims up to get endplay is not the answer.
Attach a dial indicator to the case with the contact tip of the instrument on the end of the rear output shaft. Push and pull gently on the shaft by hand while reading the end play on the indicator. (Factory spec for end play is .004 to .008 but a better job results if .002 to .006 is maintained. This is an important adjustment and cannot be done by eye or feel. Add or subtract shims as necessary to obtain the desired end play. Be sure to seat the bearing as outlined previously each time the shim pack is made thicker.
After the proper thickness shim pack has been established, remove the rear cap and shims and apply a thin coat of shellac or sealant spray. Reassemble before the spray dries and torque the bolts (30 ft. lbs.), and recheck end play, which should be the same as before (.002 to .006).