[kwmech]

... but if the power-loc was assembled correctly the friction discs should have been soaked in the modifier prior to assy to keep them from sticking to the steels.... [QUOTE]

Sounds like it may have been assemebled dry. The clutches and steels should have been soaked in modifier oil for a few hours prior to assy. Don't know if this occurred first. When you first opened the box the posi was in, it should have been really stinky, and the plastic bag it was in should have been oily.

The picture you posted indicates the posi was too clean and dry