When I torque the rear axle nut to spec (104lb-ft) the rear wheel locks. I backed it off to ~70 lb-ft and bike rolls freely. Tell me I have done something mindless here.
He's referring to the spacer inside the hub between the bearings (and I agree, that is the first thing I was suspicious of).
good question guys hadnt even thought of that. I installed a new OE wheelset I purchased from Hall's - advertised as complete - and assumed I could just swap em on. Will disassemble and recheck. Thanks.