Problem solved!
I remembered there was a third wheel included with 'the pile'. Could it be a fully assembled rear LS wheel?

It is!!! great joy. And look at that...it has those 'top hat spacers poking through the axle seals.
I think it was Monte that struck the nail on the head; missing the "top hat" spacer (thrust washer?) on the left side. But wait....what's this? the second top hat spacer on the right side wasn't installed either? Funny thing; installed the two, torqued axle nut down to 33 ft/lbs and bingo.
Thanks yuz guyz! couldn't have done it without ya

Now, on to the electrical, carbs/airbox, ancillaries...
-Galen