OP, while you are out back, pay attention to the cushion drive rubbers. The hub should meet resistance while you're trying to insert it in the rubbers. if the hub drops in very easily and there's any kind of slack in there, you should change out the rubbers. They're not that much money. From my own experience, I had some slack in the rear, although not to the point where there was any knocking or banging. I changed out the rubbers and it really firmed up the back end and I didn't have as much play. It made a noticeable difference while accelerating and decelerating.
As far as the m77 goes... There are lots of people running it with no issues whatsoever and there's no documented proof of there being an issue with it. The loctite is fine as well, as are a couple of other options
