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The assembly has moved inward as you say but it cannot be pulled out of the carrier because it is too wide for the opening in the carrier. It gets jammed between the crown gear and the side of the opening in the carrier and won't come out .
You need to pull the posi unit and remove the ring gear. Be sure to mark the caps L and R and take note of the number of bearing shims on each side. Also keep the clutch pack plates and corresponding shims separated between driver and passenger sides.
Thanks so much for all your help and all the others that responded. I have done this job on a 69 SS El Camino and on a 69 Caprice and had no problems. Going to take it apart tomorrow. Thanks Jack
Since it looks like you have a Big Block, I would check this area on the posi housing very closely for cracks starting while you have it out. Behind the gear in the corner of the opening. I found FOUR posi units with cracks right there before I found a good one! I spotted mine just with brake-clean, the oil hung in the crack.
These posi housings are much more marginal than Chevelle 10 or 12 bolt units.
Thanks for the heads up on the crack issue. I just had a careful close look at what looks like a crack in the pic. Turns out it's a burr from damage in the past rubbing in that area. Can be removed easily with a file. Checked everywhere else for cracks and can't find any.
