So here goes:
Crunch time is here, Back to work on the differential:
1. After FIRST calculating the proper number (addition of two spacers (left + right of ring gear)) to get an easy spin of ring gear (non-binding BUT NOT tight either)

I came up with 3.18mm as optimal (3.22mm bound the gears/3.14mm had too much side-to-side play)

2. I then proceeded to move the ring gear left OR right to eliminate the "backlash" (by adding 0.04mm to one side of the ring gear and simultaneously subtracting 0.04mm from the other side of the ring gear)

(I did this because "Checking for Backlash" comes first in the Honda Manual)

I was able to decrease it to minimum spec. of 0.003-0.007 in. by swapping the ring gear shims (Ended up with the smallest ring ("A" 1.26mm) on the case side and the largest ("L" 1.92mm) on the cover side).

3. I then checked the "Gear Tooth Contact Pattern Check". I added thicker or thinner shims to try to change where the pattern contacted the ring gear teeth (Instruction said coat the "pinion gear teeth").

Thicker shims moved the pattern transferred to the ring gear away from the pinion gear toward the center of the ring gear (axle shaft).
I was mostly concerned with the "Drive" side pattern (turn the pinion shaft CCW) rather than the "Reverse" side pattern (CW). (How far do we drive in reverse?)

I couldn’t get the pattern to hit the center of the ring gear teeth. I could move it up and down (contacting less or more of the ring gear tooth/material "face" or "flank" respectively from the manual) in the relative same place, but it was always toward the "heel" (outside of the ring gear) (as opposed to the pattern being toward the "toe" (inside portion of the ring gear nearest the axle)).

In desperation, I swapped the two ring gear shims (now having "A" on the cover side and "L" on the case side).

Low and behold, the pattern was exactly center on the ring gear, but now I had @ 0.015 in. off backlash even with the largest shim ("G" 2.18mm). Using TWO SHIMS ("B" 1.88mm + "C" 1.94mm = 3.82mm) JAMS the pinion gear tail/tip INTO the aluminum case through the pin bearing. At THIS point I’m down to the minimum "Service Limit" of 0.010 in. and I’m starting to run out of space until I start grinding (hit) the needle bearing (there is still "visible" air space between them).

Obviously I’m trying to get down to 0.003-0.007 in.

So I’m thinking two choices:
1. Grind down the tip of the pinion gear tip so it no longer bottoms out into the case and see if I can get it any closer (thicker pair of shims until I have no "visible air gap" between the needle bearing and bottom of the pinion gear teeth collar) and call it a day with wherever I end up with "backlash"…OR
2. Take a shim to a local machine shop and mill it down to an "as yet to be determined" size until the pinion no longer bottoms out against the case.

Comments at this point?

So here goes:
Crunch time is here, Back to work on the differential:
1. After FIRST calculating the proper number (addition of two spacers (left + right of ring gear)) to get an easy spin of ring gear (non-binding BUT NOT tight either)

I came up with 3.18mm as optimal (3.22mm bound the gears/3.14mm had too much side-to-side play)

2. I then proceeded to move the ring gear left OR right to eliminate the "backlash" (by adding 0.04mm to one side of the ring gear and simultaneously subtracting 0.04mm from the other side of the ring gear)

(I did this because "Checking for Backlash" comes first in the Honda Manual)

I was able to decrease it to minimum spec. of 0.003-0.007 in. by swapping the ring gear shims (Ended up with the smallest ring ("A" 1.26mm) on the case side and the largest ("L" 1.92mm) on the cover side).

3. I then checked the "Gear Tooth Contact Pattern Check". I added thicker or thinner shims to try to change where the pattern contacted the ring gear teeth (Instruction said coat the "pinion gear teeth").

Thicker shims moved the pattern transferred to the ring gear away from the pinion gear toward the center of the ring gear (axle shaft).
I was mostly concerned with the "Drive" side pattern (turn the pinion shaft CCW) rather than the "Reverse" side pattern (CW). (How far do we drive in reverse?)

I couldn’t get the pattern to hit the center of the ring gear teeth. I could move it up and down (contacting less or more of the ring gear tooth/material "face" or "flank" respectively from the manual) in the relative same place, but it was always toward the "heel" (outside of the ring gear) (as opposed to the pattern being toward the "toe" (inside portion of the ring gear nearest the axle)).

In desperation, I swapped the two ring gear shims (now having "A" on the cover side and "L" on the case side).

Low and behold, the pattern was exactly center on the ring gear, but now I had @ 0.015 in. off backlash even with the largest shim ("G" 2.18mm). Using TWO SHIMS ("B" 1.88mm + "C" 1.94mm = 3.82mm) JAMS the pinion gear tail/tip INTO the aluminum case through the pin bearing. At THIS point I’m down to the minimum "Service Limit" of 0.010 in. and I’m starting to run out of space until I start grinding (hit) the needle bearing (there is still "visible" air space between them).

Obviously I’m trying to get down to 0.003-0.007 in.

So I’m thinking two choices:
1. Grind down the tip of the pinion gear tip so it no longer bottoms out into the case and see if I can get it any closer (thicker pair of shims until I have no "visible air gap" between the needle bearing and bottom of the pinion gear teeth collar) and call it a day with wherever I end up with "backlash"…OR
2. Take a shim to a local machine shop and mill it down to an "as yet to be determined" size until the pinion no longer bottoms out against the case.

Comments at this point?