unk: Garrett, look on page 6-6 of the Yamaha Repair Manual and you will see how the rear wheel spacer # 5 is wedged between the spacer flange # 4 and the collar # 6 in between the bearings. This spacing is set up from the factory to allow the correct axle nut torque of 85#. If you change bearings, wheels, or any componets in that rear wheel you will have to adjust the spacing to allow the wheel to turn freely. If you move the washer from one side to the other it will not matter, the spacing on the bearings is still too tight and the wheel will not rotate correctly. If your tire is hitting the swingarm, moving the washer may help but the bearings will still be damaged by the spacer. You need the torque setting on the axle nut to be set correctly, it is not just a suggestion from Yamaha, but a real value. You wouldn't set the rods or main bearings at a value where the crank turns freely, you would set them to the correct setting. I suggest you take about .0010 off the spacer at a time until you can spin the rear wheel freely at a torque value of #85. I also see you have an 03 bike that you put an 85 rear wheel on, so I'm not sure what bearings, spacers, and parts you used on this wheel but they need to be adjusted for proper spacing. Hope this helped, Spurs