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Originally Posted by GreaseDog
just based off of what im seeing, i'm betting on the axle seal.
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+1
Put a drain pan under the pumpkin, remove the diff cover, remove carrier pin, push the axle in, remove the c-clip from the carrier (a telescoping magnet helps with that), and remove the axle. Now you can pry out the old seal and pound a new one in with a socket or a piece of pipe. When you have the axle out, have a look at the bearing surface. While you're at it, this would be a good time to change the axle bearing as well if you have the time - you'll need a slide hammer to remove the old one.
And definitely change the brake shoes!
__________________
Pete
1987 V20 Silverado RCLB: 350/SM465/NP208/10-bolt/14-bolt SF
I know enough to know that I don't know enough.