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i located the hose coming off the axle, is this the hose?
if so it wasnt clogged but the end of the hose that goes on the axle had a chack in it and really wasnt really on. could the solid piece on the axle be clogged? if so what next?
The guys have you on the right track. I'll also add- make sure your cover & diff is perfectly smooth, clean, & dry. I used a scraper & emery cloth to get all the old gunk off, then wiped it with solvent. Let it dry. Put a 1/4" bead of black RTV on the diff, going around each hole. You can spread it out using a finger if you wish (I did). Let it sit for a few until it starts to skin over. Put couple of the bolts in the holes on the cover around the 11 & 5 or 1 & 7 oclock positions and carefully lift the cover up and get these two bolts started with out messing up the sealant. Put them in finger tight. Put the remaining bolts in using a star pattern (opposite holes) until finger tight. Torque in two stages, again using the star pattern. Don't over tighten! I don't recall the torque spec off the top of my head, but should be less than 20 ft lbs. Probably overkill, but I've never had one leak yet!
The way BadDog tightened and pookied (applied RTV) is pretty much how I buttoned up my diff. Also Kupiec, I noticed you live in Mass. Don't know why I didn't think of it before, but your cover could be rusted, just enough that it weeps thru the metal.
My cover was leaking when I got my truck, I threw an 08 cover on the rear..... real bad *** looking. If the bolts are not original to the truck check to make sure that they are not bottoming out before the get tight against the cover. I work at a GM dealer and the bolts that come with almost every replacement cover are to long. And they wonder why iI drive a FORD to work.