I am new here so please bare with me. The crush sleeve in the rear end let go and the pinion and ring had an argument and neither came out very well. I need one of those rare Dana 70 with a 3.07 gear for my 1st gen dodge 2500.
I am in the Houston area and will come get a rear if you are not to far off or pay freight.
This is my work truck and I am between a rock and a hard place now.

 

Dana 70 do not use crush sleeve they use shims. Most likely pinion bearing failure, as long as the housing isn't damaged it can be rebuilt. Ring and pinion gears, case and bearings all replaceable parts. Might want to try ebay for dana 70 parts. Why 3.07 gears? That gear ratio not very good for towing.

http://cgi.ebay.com/ebaymotors/Dodge...Q5fAccessories

 

He may need the 3.07 ratio if he has a first gen with out od. When you only have a 3 speed and only turn 2200rpm you need all the gear you can get. I don't think anyone makes the 3.07 gears anymore so your only option may be used. I think there might be something in the classifieds.

 

If you're needing new parts give these guys a call.

Kabele Truck and Auto Parts, Spirit Lake, Iowa.
800-225-6908

Ask for Ken, he's helped me out a couple of times. Very good prices, excellent delivery.