You need to tighten the nut until the wheel becomes significantly more difficult to turn -- this seats the bearings and races (if you replaced them, as I strongly recommend). Otherwise, the grease will hold the bearings off the races or the races themselves may not be all the way down. Loose bearings result.

Clearance can be set by either the "crapshoot" method -- when tight as above, back off the nut 1/3 turn, then lock -- or by using a dial indicator to get just at 0.001" clearance straight in and out.

It's normal to have a slight drag -- there is grease in there, after all!

I would suspect your bearing is still a bit loose.

Peter

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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!