I didn't take note of how the orginal lower ball joint was installed. I seated the new bottom ball joint all the way in and it leaves a gap between the C clip. I suspect this is correct but I wonder if I should push it back in against the C clip? The instructions don't mention this.

 

Don't worry about it, it is perfectly normal.

Don't forget, all the pressure will be pushing the ball joint into the knuckle, not pulling against the C-clip

 

Thanks Brad, that's what I suspected. The C clip is likely just for safety