Great. That will work.
One thing people might overlook is grinding off a bit (about 1mm of diameter) on the first land of the joint. That is necessary because the diameter of the land is slightly larger than the diameter of the bearing face within the circlip. Or, it is so close, that is not worth taking a chance on.
Alternatively, one can replace the circlip with the updated version that comes with the bearing kits, or the loops/tangs/ ears on the clip can be ground for some clearance on the inner diameter.
Old version of circlip shown on top of the updated version:
The easiest way to solve the axle binding problem permanently is to hog-out the knuckle cavity a little. This can be done on-car or with the knuckles off the car.
There are a couple of threads about this in the archives, should you be interested in doing this in the future:
