Just an update for anyone interested...
1) The screws were not causing a problem. They could be 1 inch
long and not interfere. I don't know how/why tightening them affected
the armature/magnet, though.
2) The problem was caused by one of the magnets seperating from the can.
I guess the epoxy failed and one end of the magnet was making full contact
with the armature. I'm not sure if how to fix it properly or if it is worth
fixing, but it's 'rigged' right now.
To the users above: Thanks for taking the time to reply...
Scott