Left Rear Wheel Won't turn

[bunnyc]

Wheel will turn freely if the axle nut is loose. If I tighten it, it won't turn. I don't mean if I torque it to specs. If I tighten it just a little more than finger tight, it won't turn.

Here the back story. New drums, old hub. New wheel bearing, seal & snap ring. Service and e-brake rods disconnected. Adjusting wedge backed out all the way. Everything brake wise is new.

Car is up on jack stands. Running in third gear, hand throttle set for 35 mph on the speedo. All is well until I tighten the axle nut. Yes, I stop it first before tightening. Right rear is fine.

What's putting it in a bind?