The spacer inside the bearings is tight, but I can move it a bit with small pressure from a screw driver or my finger. It does not move on its own between the bearings.
I removed the caliper and installed the front wheel. It seems to spin freely and easily without the caliper installed... Which obviously leads me to believe it's the caliper.
I feel like pad A is somewhat loose, but is it supposed to be? Attached is a photo of the caliper pads. Should I tear this thing apart you think, or is it more likely that the pad was sticking due to a poor installing job on my part?