trouble adjusting 8 3/4 axle end play

With the axle removed I can see that adjustor is not stripped and working normally. i verified new seals are fully and squarely seated. I think I see what isn't right. If I measure the distance from the outside of the seal to the end of the axle tube lets call that X. If i measure the distance from the collar on the axle , behind the bearing, and with the bearing fully in the cone lets call that Y.The Y distance is greater than the X distance so when I tighten down the nuts it binds up the bearing, and this is with adjustor fully loosened. Would you say just get the new green bearings and be done with this problem?

thanks