That is not OK. Many aftermarket (cheap) Front Half Shafts are known to be too short. Are you using an ACDelco Half Shaft?

It should pull in fully when the Axle Nut is torqued.

 

It was a GSP from Lordco. Is there a way to pull it out without having to take all the bolts and hub apart again.
i guess a i can jack it up and re set it all the way out again. It's just sunk in a bit

 

I would assume that when you torque the axle nut it seated more fully. That is not the problem. When the shafts are too short, full suspension travel can pull the Diff end out far enough to cause damage to the splines. I know some people had them pop out and had a real mess on their hands miles from home.

I would never use anything other than the ACDelco OEM second generation (GM Made them longer in 2008-09) front axle shafts. Yeah they cost more, but who wants to do the work twice or more work fixing more broken stuff.