should the c's be flush with the end of the tube or should i recess the tube a little? if so how far?

on my front axle its recessed a bit, and it looks like its necassary to recess the tube some for clearance of the axle shafts yoke.

I'd leave it recessed between 1/16" and 1/8". That's how they are from the factory, and the inner "C" on a dana 44 is only about 1" thick to begin with so you don't want it recessed too far.

This is about right...
http://www.fototime.com/{0E795CE7-37DE-45EE-880E-0E6E1C42FB3D}/picture.JPG

I think you need some thicker axle tubes. :D those will never hold up. :flipoff2:

I'd leave it recessed between 1/16" and 1/8".

Agreed