Could you describe that in more detail please? I'm not "Seeing" it and I suspect we could have an issue there.

Also, I'll ask again if it's a Shimano hub. I ask because KT hubs look almost identical but have had issues. Over the years KT made some very small changes to the shape and angle of the ramps on the clutches. They made the necessary changes to the shoes as well. As you can imagine, any mismatch in parts is going to be a BIG problem even the the parts are only slightly different. Some of their hubs were actually shipped out with mismatched parts. The bikes that received those hubs still worked, but there were issues obviously.

Ticking could be a lot of things. Even things other than the hub, but it's playing tricks on your ears. A spoke cross, a pedal, a chain link, etc.

But a grinding sound does sound like the hub might have a problem. Some questions;

1. Do you have the brake side cone tightened to the reaction arm via the large nut that is on the outside of the reaction arm really tight?

(That needs to be super tight before reassembly of the hub)

2. Did you remove the spring from inside the clutch?

3. Was there a washer down inside at the bottom of the clutch?

(the bottom/inner most pointy end of the spring will grind and catch the flat surface where it bottoms out inside the clutch if there is no washer in there. With a well greased washer in place, the spring just rotates the washer, so you have two flat and smooth surfaces, the washer and the inner clutch bottom rubbing against one another. Some KY hubs got shipped without washers. )

4. Are there any nasty scars inside the hub shell?

5. Are there any weird scars on the outside of the clutch or the inner surface of the shoes?

(could be mismatched pieces)

6. How much grease are you packing into the clutch-to-shoe and the shoe-to-hub shell area.

(This will sound odd, but I only apply a generous film of grease to the the shoes and the outside of the clutch. I do NOT pack that area like we do with bearings. I have found that packing it full forced the shoes to constantly ride against the inside of the hub shell. In my experience it resulted in a strong rubbing/friction sound. Even when coasting. Not cool. With just a good film in there the shoes are free to "Float" between the outside of the clutch and the inside of the hub shell.)

If you suspect the clutch or shoes are mismatched or damaged, I've seen them sold as a "Kit" for around $8.00 at Amazon.