Woe is me. What started out as what I thought was going to be a simple repair has ended up with a nightmare noise. All went well in replacing the rear pads, shims, new rotors and new wheel studs. I put it all back together and did the test drive and hear a thunking/scraping noise from behind each wheel where the hub meets the axle. I checked and replaced the diff fluid because it was time anyway and that didn't help. Before I started this project, all was nice and queit back there. When I spin the tire by hand I can hear this nosie but can't localize it beyond where I've mentioned above. Both sides make this noise. One note, I was not able to fully seat the wheel studs and the do stick out about a 1/4" in the back, but are not touching anything there. Any thoughts or ideas where to go next? Is it OK to drive?

Thanks, I await your advice.
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'86 sedan with 351K miles with original engine and automatic transmission