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p3060414.jpg
The critical spacing between the ring gear and the pinion gear is adjusted by moving the ring gear back and forth between the two bearing caps (seen in an earlier picture.) You adjust this spacing by moving ring-shaped shims from one side to the other.

Removing shims from behind one bearing and putting them behind the other keeps the total space constant, but moves the ring gear back and forth in tiny increments to get the right spacing.