Hey Steve, as the shocks on the durango dont use a bladder design its normal for the piston to go proud of the top, as long as it doesnt prevent full travel with the cap on that's all, otherwise on a hard landing it will come out through the top.lol
As for setting when bleeding, i tend to run 0 rebound on my shocks, but its a tuning aid. For indoors you dont really need any rebound unless there's some prolonged rumble strips e.t.c
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