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In the picture above the dotted lines represent how the punch was used to tap on the bottom of the spring which made installing it very easy. One note: at the top of the spring the punch was actually threaded down through the spring, rather than over top of it like the picture appears.
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The S-spring in place between the side gears
  1. Look down through the center of the carrier bearings to make sure the S-spring is inserted correctly, allowing the axle shafts to slide into the side gears.
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You can't really tell from this picture because it was taken after the next step (the pinion shaft is inserted) but if you look down inside of your own carrier you will see if the spring is in position to allow the axle shafts to be inserted in to the housing.
  1. Install the pinion shaft (which should slide right through the carrier and pinion gears but do not install the pinion shaft retaining bolt.

On a side note, after tapping the S-spring into place my pinion gears moved just enough so that the holes were not lined up with the carrier and the pinion shaft would not slide through them. I had to use the punch again and tap the pinion gears lightly in order to line them up again.
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Pinion Race and Seal Installation