Oops,...made a boo boo
 

I measured my layshaft clearance incorectly. If you look at the photos that I originally posted you will se how I positioned the magnetic base next to the layshaft. The base actually touched the chain sproket and resulted in a false reading. I wasn't happy with the setup so I went back with a large "C" clamp and frimly clamped the magnetic base to the side of the aluminum block. Now that it wasn't interfering with the layshaft I got alot more play... 0.003" to be exact, which puts it out of spec.
Oh well, I want this done right so I'm sending my layshaft to EBS with my connecting rods. They are going to install the small end bushings and measure my connecting rods, and install a new layshaft gear on my layshaft. I asked about replacing the set of gears as a pare and he didn't seem to think that was nessecary. Something about the aluminum gear wears...not the steel one. Anyway, it is going to cost me $115 for the gear and $60 for the install. Not too bad for the peace of mind.
Well Atleast I thought enough to check twice!

Leland,
Have you sent the layshaft off yet. You can replacee the aluminum gear your self and save $60 bucks. I did mine in about an hour. Required a little heat to get the chain gear off the layshaft but after that it was cake. Put the shaft in the fridge and the chain gear slipped right on after I had bolted on the new aluminum "o" gear. E-mail me if you want to try it yourself.

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78 3.0L/3.2L CIS 911SC