69 Camaro Wheel Bearing Adjustment

[John 69 Camaro]

Does anyone know the proper wheel bearing adjustment on a 69 Camaro with Disc Brakes? The manual says to torque the castle nut to 12 ft. lbs. and back the castle nut one flat until the cotter pin aligns with one of the holes in the spindle. What is meant by one flat? I backed the nut until it fit into the first hole, which was less than a quarter inch away from lining up. At that adjustment I felt no lateral movement when I installed the wheel. If I backed the castle nut further to align with the second hole, which was about a half inch, I noticed lateral movement, so I opted for the first hole. Is my adjustment good or is it too tight?