I guess I don't what 'lock' down means. Do the bearings slide all the way on the spindle easily as they should ? The castleated axle nut is used to hold the hub in place and adjust the bearings. You may damage the bearings by tightening them too much.
Are you sure the race is installed?
Are you sure you installed the back bearing? Boy not installed, the hub would wobble like crazy!
Verification of inside diameter(s) of drum vs. verification of outside diameter(s) of brake shoes may be something to check.
Note the (s) on both diameters .... which translates into inner and outer diameters if drum or shoes are worn more on the outer or inner surfaces.
You've answered the other questions, how about my first one ?
I've had the same thing happen (for the first time ever) on one side, so I'll be curious about possible explanations.
Problem solved. Wrong bearings and races. The inner bearing was riding on the spindle as it should, however, with the wrong bearing and race the race rode on the grease deflector.
John
See post 13
John