The ball diff that came with my Lupuz ie Mad Monkey, gave this problem and I cured it by opening up the bore of the diff so that the central screw couldn't touch anything. It was still causing a problem because the thrust washer seating was not machined true to the rest of the assembly. In the end I made a little spherical seat for the head of the screw to sit on and this stopped it from breaking the heads off said screws.
By this time I had lost all patience with the thing and fitted a geared diff, which is beautiful and no longer causes me to fret over whether or not the diff will make it to the end of the race.
On my brother's Mad Monkey, I had to machine the diff half that holds the bearing because the recess just wasn't deep enough to take the bearing and so prevented the diff balls from being loaded. The only way that he could assemble it with the bits that came out of the box was to thin down the bush that came with the kit to about half its original thickness.
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