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You are lucky to have found that problem when you did. The rearend in my 98 Ram 4X4, (trak-Loc), started to whine about a year ago. I changed fluids, and drove it making noise for about for about 2500 miles. I decided to pull the cover to see the damage, and found the driver side carrier berring trashed. It was so bad that there was no way of removing the chunk. I ended up having to find a used rear end for $900, and replace the whole works.
Go ahead and replace what needs to be done, but while your at it, spend the money for the gear ratio you want, then you will be done with it, and never have to be inside the rear end again.
I'm about ready to go through the rear end in my 71 GMC 3/4 ton, and put a new ring and pinion (4-11 ratio), and since I'm there, I will put a Detroit Locker in there too.
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