Ok, so after going to both autozone and mult advance auto's(because I was dealing with idiots who tell me they have the bearing removal tool in stock to rent but can't seem to find it when I get there even though they say they are putting their hands on it when I am talking to them!) I was able to pick up an axle bearing kit. The guy there could not tell me whether I needed to buy the seal as well??? So I picked one up anyway.
First let me say, I have worked on numerous vehicles my self. Rebuilt a motor, pulled multiple transmissions (to replace clutches, fly wheels, replace tranny etc) replaced front bearings, half shafts etc.. So I have some good knowledge about cars. But I just have never had to work on an axle before. Most I have done is change diff fluid. So I may sound ignorant on some of these questions but I just want to do it right the first time.
I looked at the bearing kit and it seems it is basically one piece. Looks like the seal is built in. Is that correct? If so,after removing the pinion shaft screw,sliding out the pinion shaft, and sliding the axle shaft out, I should just have to pull the old bearing and seal, then pound the new one back in, right? Should I coat the bearing and casing in something? If so, should it be bearing grease or geal oil that I'm going to put in the diff anyway.
Also, is there anything I should know about the pinion shaft screw and pinion shaft. The c lock as well(does it just pull off? Does it just snap in? How does it stay there?).
I know it's a bunch of questions, but I'm going to go at it tonight hopefully and I just don't want to run into problems and have to get back on and hope I can catch somebody quickly. Thanks again to all!

 

I have not done the axle work on the 8.8 but,
the rear end part I can help with
the pinion screw and shaft should come out easily
turn the differential as little as possible to get to the c clip
a magnet on a stick is the best way to retrieve the c clip
you have to push axle in to allow the c clip to be removed
it is held in a groove in the back of the spider gear
and cannot come out until the pinion shaft is out off the way

 

YES YESI put grease on them It is held in a groove in the back of the side gear. When you take the pinion shaft out and push it in at that point it is held on by an "O" ring, do not take the "O" ring off. Do not move the ring gear with the pinion shaft out or the gears will drop out.

 

Thanks!! very good to know. I will try to tackle it this evening. Last night kids had baseball so I was only able to jack it up and get started before it got dark on me.
I will post back with results.

 

I see that you might have found the problem but, you could also try greasing the driveshafts slip joint. Those have been known to make a weird thumping noise as well.

 

Finally got to it yesterday. Whole job should have been 2 hours. Instead, axle shaft got stuck and would not move in for me to get the c clip off. I think the bearing was so bad it seized to the axle. Don't know for sure but had to finally hit it with a sledge hammer to get it to free up and slide in. Took it out and there is a very bad grove in the axle shaft. So bad that I have to go to a junkyard today to look for one. The bearings were in pieces. It took me about 7 hours just to get the darn thing off!!

 

After getting it off, the axle shaft had such a bad groove in it that I had to go to the junkyard and pull off another one. Only $20!. Can be pulled from a 88-6 f150 and a e150 in similiar years. As long as it is a 8.8. Got the other one and put it back and got everything back together in an hour or so. Very happy.

Thanks to all.

 

Yes, but is the noise gone?

 

Sorry, guess I forgot to post the most important part! yes, the noise is gone. small other vibrations are coming from other areas but not from there. That noise is definitely gone. Still have bad tie rod ends that have to be replaced and shocks that need to go.
Thanks