Ed...don't cut those rotors just yet.
I found my brake pad knock back problem. I have to say I'm a little dissapointed in Moser Engineering and Wilwood honestly. These guys are in bed together and their products should work together. I figured out that I have .020 clearance between by bearing retainer and bearing outside race. So the bearing and rotor are sliding back and forth .020 before any bearing flex. I'll add a shim behind the bearing and it will fix it. I am going to call Moser out on the carpet in the morning.