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It seems like there isn't much difference between 0.006" - 0.016" gap, all have very smooth lift with a slight "settle" or "sag" when you shut down. I didn't try anything below that. The spec is for 0.004"-0.008" gap (0.1-0.2mm). Once you go above 0.020" gap things get interesting, however.
I tried going back to the original setting of 0.045 to see what would happen. Sure enough, the jerky action was back, but there was no settling of the hitch when you shut the engine down.
I reduced the setting to 0.030", and something I wasn't expecting happened. The hitch started cycling slowly up and down about an inch all by itself.
Reducing the setting to 0.026" made the cycling much worse, enough to actually shake the tractor with only a drawbar on the hitch arms. About 3-4 inches up and down fairly rapidly.
I tried going down to 0.020" and the hitch was close to being stable, a couple of minor oscillations then it stabilized for the most part. Right on the edge of acceptable, I think. It also settled about an inch after shutdown at this setting.
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Sean