OK, so got an update on this situation. I'm not focused on what got me to the place where I have the third member out......Looking forward to getting it fixed.
In a nutshell, CHINA F'd me hard.........
I've spent hours examining every possible issue. TOO many scenarios to go through. Even had a buddy come over and help and he left the shop shaking his head. A strange thing happen yesterday that left me at a total loss. I had the outer pinion bearing in my hand and was spinning it. It just fell apart......OMG how in the world right?
I continued my troubleshooting with one of the old Temken bearings I had. I got consistent results when changing my solid spacer for the old bearing. Something I wasn't getting before. Odd right?
Get a replacement bearing from parts store and started back this AM........ inconsistent readings. Tight one turn then loose. I noticed the new outer bearing was fitting the pinion shaft really tight. OK, maybe it's getting stuck and the rear bearing is pulling in more as I tighten the nut. I'm on to something now....Polish the pinion shaft and the bearing now slides on with just a small amount of resistance. With the pinion still in the vice, I slid the solid spacer on....then the outer bearing.....Hold it bearing in place and give it a spin....NO SPIN.....WTH?
The top of the bearing case on the new National brand bearings is smaller than the Temkens I took out. The solid spacer is contacting the cage and will not let the bearing spin freely. Repeated crushing/deflecting of the cage caused the first bearing to fall apart.
So for the solids spacer haters (just kidding

) you win this round. While the bearing is the issue, had I not opted for a solid this issue may never have came up.
Now what to do. Buy another brand of bearings and use the solid spacer or buy a crush sleeve. Leaning towards different brand of bearings because I'm still not sure if the pinion support is damaged (probably not) as the original issue was a "hitch" in the pinion and a speed related vibration.
Tim