Hello Steve,
Not in my book. You could use 0.004" if you wanted to be certain of shortening the life of the bearings.
Not in my wildest dream would I contemplate using a 0.004" running clearance on a Taper Roller Bearing of the size used in the rear hubs, or for any application for that matter.
The picture below is a scan from an S3 manual, a later car than your’s and therefore a later manual I assume. Jaguar may have started to get it right by then,
Hello AJ,
The bearings are the same, only the End Float specified has changed. Presumably the Jaguar Engineers determined an adverse issue with the greater End Float.