I got this one done this weekend. I tightened the nut down by hand very tight, but could still freely turn the hub. The washer was locked. I backed it out a bit until the washer turned freely but with some resistance. I could not get any play in the hub in/out or side to side.

I put the rotor on and attached the magnetic part on the rotor and the dial on the nut. Wiggling back and forth I got readings of 1mm of travel. By feel only there was no play at all. With the wheel on there is still no in/out travel but some back and forth travel.

Tightening by hand does not allow me to "lock" the hub/rotor. Should I be cranking that nut with channel locks or something?