I figured out that the fluid oozing around my rear tire is differential oil, not brake fluid as I once imagined. Since I didn't have the new seal to replace, I didn't pull the axle. I DID check oil in the differential, and it was a little low. What bothered me though, was that above the drainhole and around the sides inside the case was an oily silver paste with little metal shavings in it, about 1/4 in thick. I gather that maybe this is normal wear and tear, but it freaked a newbie like me out anyway... so what do you all think, trouble, or trifle?
Mike

 

Is it making noise? If not the bearings and the ring & pinion set are fine. A common problem on these trucks is a badly worn cross shaft (the shaft the spider gears are on), if you have a bad clunk between reverse and drive that's likely to be the problem. On trucks with the limited slip rear, the clutch packs wear so thin that you end up with the same symptoms.

Keep the oil level 1/2" to 3/8" below the bottom of the fill hole (per Dodge FSM). When you fill them all the way up the "extra" usually ends up in the brake drums.

 

It does make a little sound between D and R, and sometimes it's difficult to shift into that gear. It's an open differential, so I wouldn't be running into the lsd problem. No noise when it's running though. I spun it for a while, and there was no grinding, AND the oil looked clean in the bottom of the case. Thanks the advice. I'll try to get some pictures of her up soon.
Mike