When you say you made sure it is riding on the retainer did you measure them? Also, you made sure that everything was pressed together when you measured? I've seen guys have the bearing not fully seated and have a little slop, which skewed their measurement and caused the retainer to be pressed too far down once the axle was installed and torqued (hell, I've done it once or twice myself when I was in a rush).
One other thing I've seen is gouges on the axle from cutting off the old races. I know some guys like to put sealant as they press the parts on the axle, but in this case it still slipped under the retainer and bearing, customer had the previous shop buy him a new axle and bearing job (was only a month old.)