[Chilly]

Sounds about right, I have a Snowbear trailer I got from WalMart, with 12 inch wheels. I set up the spindle nut so it's torqued to maybe 10 ft lbs, spin it to seat the bearings, then back off to the first hole to install the cotter pin. There should be at least a little bit of side play in the bearings after you put the wheel back on. First time out, drive a few miles, then pull over and check for hot bearings. Repeat after maybe 10 miles at higher speeds. The hub should be warm, if not cool, and never so hot you can't keep your fingers on it. I think the lug nut torque is around 80 lbs.
At least Harbor covered the mistake, it would have been an expensive fix otherwise.