So far, this sounds like a recirculating ball steering gear. Back in the day before rack and pinion steering, I rebuilt many Saginaw steering boxes. As I recall, the balls went around the worm and the nut and worm had a bulkhead in the housing in between them. We used a dummy shaft to stack the balls in, then twisted the worm into them from the inside of the housing. Sounds like you got one of the balls out of place.
also, there were two sets of balls - one was shiny bright while the other had a dark cast to it. They were to be alternated in the nut. Dark, light, dark, light, and so on. It has been a long time since I had one apart, but as I remember, without the dummy shaft, it was near impossible to get them right.
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