i didnt even put a torque wrench on it yet, i just snugged it up with a wrench not very hard.  The spacer is inside of the seal, and the oring is in between the spacer and the bearing race.  When i tighten the nut it is compressing the oring and making it hard to rotate.  When i take out the oring and tighten the nut everything turns smooth and freely.  Thanks