Okay, I installed the 3.42 rear this last Monday. But, there's a problem. The RR wheel area has a grinding to it. We looked and the outer .5 inch of the rotor is all eaten up. The pads seemed fine. Put on a new rotor, still grinded. Put in washers because part of the caliper was actually eating the rotor, to separate it. Still caused grinding. Then when I was about to just go and buy a reman'd caliper it hits me while trying to get my wheel back on.

As I am tightening the wheel down, the whole wheel is moving in and out and you can hear as I rotate it the grinding noise of the caliper scraping the rotor, and if I push it back in, there is no grinding noise. So I believe the weight of the car is forcing the wheel/disc to lean in causing the the caliper to rub against the rotor?

So I need to replace the bearings, yes? Do I need a special tool?