From memory the Cougar2 manual doesn't show any conical spring washers in with the thrust race. You may need to add some of these if you dont have them as the diff will heat up if the diff becomes too loose.
I experienced this problem myself years ago and it wasn't till looking at other model manual that Schumacher had slipped up here. My diff kept loosening off which inturn created more heat which transfered through the alloy diff carriers and melted the plastic outdrive. In the end the car wouldn't move at all as the diff had loosened to the point where the balls and plates were too loose.
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