Im looking into a high horsepower mk3 build and was wondering what i would need to do to the rear end (differential axles etc...)
http://www.4x4wire.com/toyota/tech/crush_sleeve/
Marlin Czajkowski and I had a little chat recently and I brought up this subject wanting his insight on the technical aspect. He too agreed that once the crush sleeve has been used to set preload, it serves no further purpose and later "crushing it further" by some means would have no effect on the pinion setup or reliability.
However, he did mention that he feels that there is a very slight rocking in the bearing assembly once the preload drops to zero after break-in. Having the pinion, bearings, and the complete stack as firm as possible may provide better stability in the assembly. (I know this is hard to explain.) He feels that over time, as the assembly gains a little play, that having the solid spacer helps with the alignment of all the parts and provides some increase in reliability. He does prefer to install solid spacers on hard core third members, but says they are a bit more difficult to do and take more time to install.
Marlin did mention where he thinks increased play in the assembly comes from. He mentioned that the pinion flange is relatively softer than all the other pieces in the assembly stack. He feels that over time (and beating on rocks) that the forces on the flange displace the metal and basically mushroom it out, causing the axial dimension under the pinion nut to decrease. THIS would cause play in the assembly, even without the pinion nut moving. Theoretically, this could grow enough to allow the pinion pattern to move around and cause gear wear problems.