I must be losing my marbles. I could have sworn I put both races in. I even remember setting the outer race on top of the hub. I must have gotten distracted by a phone call or something and came back. What fooled me unfortunately were the two 'steps' in the inside of the hub that are roughly the width of the race, and that it was relatively smooth, which made me think the race was set all the way in.
Sorry to have wasted everyone's time on this one. Live and learn. I can't continue until I have more grease, so will continue later.
I still could use some advice on the outer brake pad just falling out of the caliper when the hub turns, if anyone has thoughts.
