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Either way, you should back off the inner nut after the final torque to achieve the .001-.010 end play when your done. The torque of the outer locknut should not affect much at 60 or 160 ft-lbs. It just keeps the washer in place, which keeps the inner locknut from backing out/rotating.

The correct procedure according to my 1979 GM factory service manual: Torque the inner nut to 50 ft-lbs while rotating the bearing hub, then back off and re-torque to 35 ft-lbs while rotating the bearing hub. Then, back off the inner nut again 3/8 turn maximum. Next install washer and outer...