So a small update. I emailed Ames over the weekend and showed my pictures and no surprise did not hear back from them so I just called. He wanted a measurement and told to use a tape measure from the axle bearing shoulder to the end of the splines.
Any guesses on what I found?
Well the old original axle measures 27 inches and the new one measures 27 and 1/2!
Holy crap a half inch! no wonder its hitting my wheel cylinder. Now waiting to hear back on what they can do about it.
He said he never heard of this happening and I said its because the unheard of crap only happens to me. Seriously when i have car repairs to do its never the common solution its always the bizarre.