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There is some variation in actual tire diameter vs what it says on the sidewall, and not just on worn tires. It's also possible the Australian market got a different (locally sourced?) tow bar with slightly different dimensions.

Sludge build up like you describe is usually an indication of neglect, though coolant leaking into the oil can also be a factor. A PCV system that isn't operating correctly can cause it too. If you have the heads off, go on and clean them up and put some assembly line on the cams and valve lifters when you reassemble. Then I would probably do a full with ATF and new filter. Let the engine idle for a while, drain and change the filter and refill with some 5W-30. Run it for a few hundred miles and change again. That should clean it out. Something the old timers would do is replace a quart of oil with kerosene or diesel fuel and do the idle routine. You don't want to put a load on the engine while cleaning it out, the lube will be too light and allow damage. One thing that concerns me is the condition of the bottom end. The main and rod bearings might be damaged by coolant contamination. My niece bought herself an 05 Altima last September. A couple weeks later either the head or head gasket let go, something the first generation 2.5 suffered from. I told her it would be cheaper and better to just replace the engine with one from a wreck. It wound up costing just under $200 for me to swap the engine. Can get them pretty cheap here, about $130 is what hers cost and a few hours of my time that she paid me for. My 93 Pathfinder has a 3.3 from an Xterra in it because it was cheaper and easier than repairing my original 3.0. Fits fine and runs well. With the 2 coolant hoses at the back, bulk hose will work fine for the straight one, but the space and bend is too tight, you need a molded one and I have found in my area at least the dealer part is competitive in price and the easiest to use.

Once you get the magnet back in the pan, you don't need to drop the pan again on fluid changes. That "filter" you replaced isn't actually a filter. It is simply a fine screen that self flushes when the engine is shut off. So simply pulling the drain plug and replacing the fluid every 15-20k miles will keep the trans happy. Little trick to make reading the dipstick easier is to use a white paper towel and simply laying the dipstick down on the towel. The fluid will wick onto the towel showing where the the level is.

Thought I'd put up a build thread for my 2003 Chilkoot Edition Pathfinder. I'll be posting info and photos of my build as well as questions I have regarding R50 builds etc. Just to give a little back story, my Pathfinder was purchased from a second owner. The guy said he was planning to turn it into an off-road capable rig but with Covid-19 decided against it. When I picked it up, it had around 220,000 kms on it (located in Vancouver, CA). I took it to a local Nissan dealer, North Vancouver Nissan, to get it looked at and everything seemed to be running great. They put some new CV boots on it and changed the fluids and I was good to go... Until about a month in when the engine started to run super erratically and would start rough. Took it back to the dealer after taking out and cleaning the throttle body (which didn't help). Dealer thought it needed a new throttle body, then a new MAF and then a new ECU. All of which didn't help. Finally, they recommend I replace the engine. I begrudgingly said yes as I love the truck and wanted it running so I did the engine swap. Now she runs great, "New" engine has 130,000 kms on it and I'm starting to put some mods into it. The engine swap ran me about $6k so needless to say this may be becoming the most expensive R50 build in history. Tomorrow I'll be putting the SF Creation 2" spacer lift on it and upgrading the tires to Falken Wildpeak 265/70r16. Keeping the stock suspension and wheels for now, will probably upgrade in the summer to aftermarket wheels with the correct offset for 3.75" backspacing but this will do for the time being! Excited to share the lift and the build as I go. Here's a pic of everything stock. Will post the lift tomorrow. Cheers