I ground out the grooves in the ruts on my knuckles, filled them gray MarineTex (epoxy putty) and then sanded them flush. I've probably only put about 5,000 miles on it since doing so but the epoxy seems to be holding up great so far.

http://marinetex.com/products/marine-tex-products/marine-tex-epoxy-putty/

Welding would definitely be a better repair, but I wasn't set up to do that.

 

Have the wheel hubs been changed? There are different depth wheel hubs...I'm not sure when the year changes were but if the hubs were changed and it still had old brake pads, it could have worked fine but new pads would have made the offset too much or too little. I believe there is like a 1/4" difference in the hubs, I not for sure. Just a thought.

Happy Jeepin'
TexasTaz38

 

This is a possibility as well. It looks like the 98 only had the old style hubs whereas the 99+ had the different hubs depending on rotor construction.

However unless you owned the Jeep new, then it's possible a P.O. used the wrong hubs.

I have an old hub out of mine (the old style which 98 should use as well) if you want any measurements - just let me know.

 

I have a 99, and that's exactly what happened to me. The PO had installed the hubs for cast rotors with the longer studs. They didn't do the brakes ! It went together fine with WORN pads !!! I replaced the hubs with the shorter lug version for 99.5 with composite rotors. Used Centric 120.67022 rotors and Akebono ACT3 Ceramic Pads. Another thing,,, if you tighten the lug nuts up against the rotors w/o the wheel on, the seats go down into the holes and pushes the rotor over against the pad. That may be it as well. My best guess is wrong combo of parts.