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I just purchase a 1997 F150 4x4 and I noticed that when I start from a stop, the differential chirps twice as the load is transfered to the axles. Could this be an indication that the limited slip is going bad or could some DPO used the wrong lube. The truck had the oil changed just before I bought it at one of those drive up places. Sometimes those guys check/change the diff fluid when they do the oil. I have an appointment with a service manager at the local dealership, but I have little faith in their ability to diagnos problems. The truck has only 53K showing and its real clean underneath, no leaking seals could be found, but the fill plug did have a spill streak where they may have checked it or replaced the fluid. Is their some special additive for limited slip/positrac diff's?
Are you sure it's the dif? I don't want to second guess you, but it could be as simple as your leaf springs squeaking. Jump up and down on your rear bumper and see if you can get it to make the noise. If you can, then 9 times out of 10, the little teflon pads that go in between the ends of the leaf springs are gone. I've seen that many times and had that problem on my 97. If it is the dif, then you either need to use a bottle of friction modifier (Ford brand is the best and isn't that expensive) or use a synthetic that doesn't require an additional modifier like Redline or Amsoil.
I tried the jumping on the rear bumper...Nada..no noise...I will try some of that locking fluid first, but I am afraid that the chirp - clunk is bad clutches. I had a similar experience with a a Jasper built diff some years back - but this was on a race car. My truck has electric brake controls installed, I am afraid the previous owner may have jerk something wat to heavy around, if so I may have future tranny problems too. I will have the tranny checked out before the drive-line warranty expires!