170 ft-lbs sounds to me like a figure for a non-crush sleeve (spacer type) pinion setup.
With a crush sleeve, there really is not a set torque value for the nut, it is whatever it happens to take to crush the crush sleeve.
In my experience, crushing the sleeve runs in the range of 250-350ft-lbs on the pinion nut, at least on the 8.8" (it's a little less on the D35).
Continue tightening the nut to crush the sleeve... When the slack between the pinion bearings gets real small, continue tightening only in very small increments (like 1/12th turn at a time) while checking the bearing preload each time, since 18 in-lbs or whatever the bearings call for will come up VERY fast as the bearings make contact with the races (if you exceed the preload, the crush sleeve will be ruined and you'll need to start over with another one).
Also (maybe you already know, but just in case), leave the crush sleeve out while you are setting up your pinion depth, in which case you only need to lightly tighten the nut to set your bearing preload (use an old nut too, not the new one). Once you have a satisfactory contact pattern, then reassemble it using the crush sleeve and a new nut.
Hope that helps.