Hope this won't be the kiss of death for your bearings. With 120,000 miles of wear on the pinion bearings, I probably would have thought long and hard before I had someone mess with the pre-load. I've seen a bunch of pinion bearing failures after a pinion seal was replaced, especially on newer Dana's. Not always though, so maybe you should burn some incense, do a couple shots of Fireball, or sacrifice a bucket of KFC in honor of the bearing God's just to be safe!