Hi John-boy, increasing your downstop setting will reduce your suspension travel/uplift, ie your droop. I would recommend you read the sections on downstops, ride height and droop in the XRAY Setup book that came with your T3 so that you fully understand this and the realtionship between ride height and droop settings.
I personally always run the diff in, but I don't think that is your answer. I always find the diff to be smooth after a rebuild but before the run in. I have never glued the plates to the outdrives so someone else will have to comment on whether that would contribute. When you say rebuild, what did you actually replace?
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