Mike -
Which model is this? Is it the most current model (KGM), or is it one of the older Hobart models (GM or GM-A)?
I don't have one, but I've borrowed my sister's (current model KGM) to give it a test run, though I haven't disemboweled it. My own grain mill is a Messerschmitt Jupiter/Family Grain Mill with the KitchenAid PTO adapter, but I'm shopping for something different. Maybe the KA compatible MockMill, maybe a Retsel. Or, perhaps even one of the older Hobart-made KA mills.
I did look at this
video form KA:
but I really can't see any shim washers or similar which look like they could go AWOL.
However, if the adjustment knob hunk, with its burr, weren't fully seated into the main housing (for whatever reason) that could stand the runner burr off of the bed burr and result in too coarse of a grind. Not saying that's what's happened in your case, though - it's just a thought. No doubt you've checked that already...
Kevin