1986 Front Steering Knuckle Removal

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I have never taken apart a front axle so these may be not the most intelligent questions. I have a 1986 front axle assembly I picked for my 1964 K10 and I figured since I have it out, I would replace stuff.

I have read the forum (a lot) about swapping the axle assembly for disc brakes and learned much so far as there are folks willing to teach and show pictures. In addition, I have bought a 1986 service manual to get the specific information.

However, I am at a point where I am not sure what to do next. I am trying to get the steering knuckle off and I have read that I can knock the knuckle loose by beating on the upper ball joint (I am replacing both ball joints).

I am merrily beating the upper ball joint but nothing moves. Upon closer inspection I notice the adjusting ring (300) in the yoke. Hmm, time to go back to the service manual. I review and I am not sure how to interpret the instructions.

1. Do I need to do something with the adjusting ring (300) before removing the knuckle?
2. How exactly does the adjusting ring work? Does it press down on the upper ball joint?
3. Any words of wisdom?

Thanks!