Thanks for all the input. I'll update the thread when I have a chance in the next few days to pull it all apart and re-do it again, and a little tri-flow dripped down into the hub.
Chain suck...follow the order: 1) used chain/cassette, no suck. 2) rebuilt axle bearings, got lots of chain suck. 3) put new chain on, less chain suck, but still there.
If I loosen the axle bearings enough, I can eliminate chain suck. Anybody know if the Shimano DA grease is significantly lighter than Phil Wood? Perhaps it's really that simple that Shimano uses a thinner grease?