Dan Burkhart 

Nearly all issues I've seen with these hubs have been shifter/cable issues. Get that sorted out, and it's all good.

Banzai

But wow. A cable FERRULE?

I mean, I hate to say it, but another +1 for derailler systems. I match them up appropriately size-wise, but otherwise never worry about something like a ferrule throwing the whole system out of whack.

I'll find out in 2 days when I get back to town if it actually works. Funny thing about this problem, I could never get it to malfunction on the workstand...only while riding on it. So hopefully the shop actually took it for a test ride.

It always works perfectly hanging on the stand. That's one of the frustrating parts.

No, the frame isn't flexing. I went there first. This is an overbuilt, rigid as heck AL frame, and there are no cracks or other damage. Plus, I'm only 140lb pack fodder. I don't really flex frames.

wschruba

Yes, a cable ferrule. The 5mm aluminum ferrule is made specifically to fit into the carrier unit (large aluminum ferrule) that interfaces with the cassette joint.

For that matter, right up to the advent of 11 speed derailleurs, shimano specified the same ferrule for their rear derailleurs. Since an occasionally indecisive shift on a derailleur won't damage anything, most people didn't bother with it. However, it makes the same difference with a derailleur as it does with the cassette joint/clutch on an IGH: it doesn't bend/deflect when either the cable/housing combo is tensioned (or the derailleur moves). A more extreme example might be incorrectly using spiral (brake) housing instead of compressionless housing.

Consider the cable pull chart for the Alfine/Nexus 8 speed (and any other shifting mechanism, for that matter). They specify a specific target, down to a 1/10th of a millimeter. In a perfectly setup system (derailleur or IGH, doesn't matter), it doesn't take much to get the mechanism to slip, be it derailleur or clutch--1mm of cable movement, even less, the more positions the mechanism has. This seemingly insignificant amount is not new, and you'll find that the sweet spot for the second gear of a Sturmey Archer AW-3 (particularly an old one, where the proper indicator rod is no longer available) is just as finicky with tension adjustments as a modern hub, regardless of speed count. This problem is further compounded the farther you get from the lowest gear (least/no cable pulled). The effect is probably best seen on a derailleur; set the high limit just in line with the smallest sprocket--rather than offset to its outside face, as it should be--by the 2-3 largest sprocket (8 speed), you'll get clicking...even sooner on a modern 10/11 speed system.

TL : DR

Cables/ferrules are important, and Shimano in particular is quite vocal that in order for their systems to work properly, you should use their equipment. They can't guarantee anyone else's (or even their own, improperly specified) will work properly.

Is it possible that you may still have problems? Sure, but I've seen similar issues solved like this before: asymmetric chains on backwards, wrong ferrules (old Dura Ace), loose/damaged cassette joints (Shimano IGHs). By the way, if you replace the internals of the hub, replace the cassette joint, too. I've seen several hubs where there was skipping/etc, that had internals replaced, only to skip again. The culprit in all cases turned out to be the cassette joint.

Since the topic has veered onto cables/housing/ferrules, etc...you are using a full run of housing from the shifter to the hub, correct?

Banzai

Yes, full-length housing.

Jagwire road shift cable. The same cable that works flawlessly with my derailler bikes, both on SRAM and Shimano.

So I'm a little irked.

We'll see how it actually rides.

Mr IGH

If the inner seal of the cassette joint is install backwards the cassette joint sticks and shifting suffers. Be sure to install the inner cassette joint seal cup down, not up.

mconlonx

Not so much. A few years back we were having trouble with, I think, Shimano Claris or the new Tiagra stuff and it ended up being due to the ferrule at the derailluer.

fietsbob

Or Bump up To Rohloff.. all the shifting is in the Hub itself..

Banzai

Some thread resurrection here.

In January/February, I paid nearly $100 to have this hub serviced. Guts pulled, stripped, cleaned, lubed, etc. I was told, as mentioned above, that the problem was the cable housing ferrule. BS, but whatever.

Anyhow, after leaving the shop, STILL skipped under load in 5th. I spent some time trying to fine tune the cable tension, hoping that maybe I could find that sweet spot, wherever it may be. Now it's May, the hub is still malfunctioning in 5th. Shops keep insisting it's a cable issue. They keep "fixing" it, and it doesn't work.

I hate this hub. I hate everything about it.

Just bought some cheap Deore hubs, and I'm going back to a derailler system on this bike. Then I won't have to worry about any of this BS anymore.

Reynolds 

Maybe it's too late - but did you try another shifter?

Banzai

Update, Oct 2016: This hub still sucks. Still skips in 5th. Shops still want to take lots of money, none will guarantee results, none will warranty it.