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kyleb,
The shaft angle may be the source of the damage but I'm no expert. I would think the u-joint would howl before the diff.
I did notice that nowhere do you mention that you're using friction modifier in the fluid. Jag diffs will not live without it in the 80-90W. They will start by making the noise you describe.
Kendall makes a good one-just add a 4 oz. bottle when you've got it sorted.
Best luck.
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Chas.
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