8 3/4 differential swap issues...

If you're sure that the sure grip is a cone type and not a clutch pack type then it sounds like you're missing the thust block. Remove both axles and shine a light from one end to the other, if it looks like an open hole then the block ain't there and you've got 2 options.

Yep. That's what it sounds like to me too. A lot of guys pull the thrust block (used in the cone type) or thrust pins (used in the clutch type) because you have to if you want to run green axle bearings.