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Speedo drive gear question

My angle drive gear is loose on my 72 Pre-L. It's the large nut that attached the assembly to the ZF. Is this the part that causes bad things to happen if it's loosened? It seems that if I turn this nut counterclockwise it will pull the angle drive closer to the block and tighen it. Is this the case?

Thanks in advance for your help.

John
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