Here is an article about Pre Load
http://www.truckinginfo.com/channel/...-properly.aspx
This part especially.
Perils of preload
Loose wheel bearings aren't the end of the world. It's a little annoying and inconvenient at times, and costly in terms of tire wear, leaky seals, etc., but short of having the wheel come right off, there's little real threat to a loose wheel bearing.
On the other hand, excessive preload often will cause a bearing to fail within a few hundred miles. And that could be part of the problem. Techs reluctant to over-tighten a wheel bearing may err on the side of caution, preferring a slightly loose bearing to one that is too tight. Nobody wants a wheel-off occurrence.
Preload - the opposite of end play - is where there is no hub movement at all relative to the axle. In a perfect world, the bearing would be loaded so there is zero endplay. But Stangl says preload cannot be measured, so it can't be determined that the bearing isn't in fact dangerously tight. (Rolling torque is an option, but that has its own set of variables.)
"The one- to five-thou range recommended by RP 618 is a compromise between too loose and too tight," Stangl says. "At zero, we're into preload and we can't measure that. Between zero and one thou, we could be measuring deflection and still be in preload. Between one and five, we know the bearing is not preloaded, and it's not too loose that it will cause other problems downstream."