Don't forget, the workshop manual gives the wrong clearance (1.5 to 2 flats). It was updated several times, last TR3 value (in Practical Hints 6th ed) was only 1/2 flat.
Also, replacement felt seals are frequently too thick and will interfere with the bearing adjustment. IMO the procedure given in the TR4 workshop manual is better when replacing the felt. Basically, you leave the felt out while discovering the correct position of the nut (if necessary, filing the nut to achieve only .003" to .005" of clearance), then mark the nut position. Remove the hub, lube the bearings, install the felt, then put the nut back to the marked position.