I am currently in the middle of my gearbox rebuild and everything has gone together fine so far however I have checked the gap between the 3rd motion bearing retainer and the gearbox and without any shims the gap with feeler gauge is only about 2 thou of an inch. In some places around the retainer I can't even get the 2 thou feeler gauge in.
Would this be an acceptable amount of clearance to retain the 3rd motion bearing once the retainer is tightened?

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1963 Morris 850

Yes. It will be fine.
Contrary to the belief of some, putting more shims gives less preload against the bearing's circlip. Because you are shimming the retainer out.

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DrMini- 1970 wasaMatic 1360, Mk1S crank, 86.6HP (ATW) =~125 @ crank, 45 Dellorto (38 chokes), RE282 sprint cam, 1.5 rockers, 11.0:1 C/R.

Thanks Doc

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1963 Morris 850