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I don't know the real function of a bushing on the pinion end of the rack housing. The MGB is a typical rack design that uses a nylon plunger opposite the pinion to keep constant pressure between the pinion and rack gears, theoretically giving zero backlash (when the gears are in good shape). As the gears wear, it's sometimes necessary to remove shims to maintain good contact. Some gears use a spring to keep constant pressure instead of the shims, the method used in most later cars.
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