bjcsc, the procedure you mentioned doesn't make sense. Back off 1/3 of a turn?... this would result in way too much axial play. Yes, you tighten the nut real hard - until the wheel is hard to turn - to seat the bearing and squeeze the excess grease from the contacting elements. But then you have to adjust the preload to 0.01 to 0.02 mm axial clearance. When I did mine using a dial gauge, the clearance was imperceptible by feel.

If I was to suggest a backyard way of setting preload after tightening the nut, I would back the nut until just loose, finger tighten, then lock the nut. Bearing preload is absolutely critical to bearing life, more so than grease. You'd be amazed how little grease a bearing needs to survive.

I don't like to hear that the shops around you are using this practise. I work in the bearing industry and one of our battles is dealing with service garages who don't know how to properly service a bearing. All too often, the user comes back and blames the bearing for inferior quality. Rarely is there anything intrinsically wrong with a bearing. The main problem is people who improperly install or service them. This is one of the reasons the American automotive and truck industry is moving toward unserviceable units that are so expensive to replace.

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95 E320 Cabriolet, 169K