The bakes were dragging a bit on this cart and I though it would get better but no luck there. So, I jacked it up and pulled a wheel. With a flashlight I could see there was a gap between the inner pad and the disc but not a gap between the outer pad and the disc.
This observation was made when the disc was held in tight against the hub as the wheel and lugs nuts will hold it.
Ausco says to remove the space washer between the hub and the bearing retainer ring if the outer pad is dragging.
I put a pair of washers on as shown on each side to space the pads outward. The result was a cart that rolled better than ever. Thought this might help somebody