Actually, it sounds like the thrust collar is too thick, or something isn't positioned correctly, causing the wheel to bind.Don't put it back on the truth like that. Take it back apart and make sure you installed everything. Sounds like you forgot to install the thrust collar.
If the thrust collar is too thick then more than likely you are not using an OE Garrett repair kit. I'd say something was installed wrong (i.e. thrust bearing not seated right, compressor end seal binded, etc.).Actually, it sounds like the thrust collar is too thick, or something isn't positioned correctly, causing the wheel to bind.
Moving to U&A 7.3L engine forum, as it's more relevant there.