Flush to almost 1/16" deep in the front. You may have to install the diff to see if you can start the 2 front bolts to see if it's in the right spot. You want to snug up the rear nut and then try installing the front bolts. If you have trouble installing the front bolts. You may have to move the bushing in either direction. You always want that rear nut snug first. Because then the bushing is fitting into the taper of the stud.
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