[Prowbar]

Here is the completed Dana 60 setup. Completed this quite a few days ago but have been busy with other stuff.

Did some more fine tweaking to the setup using the setup bearings. Could get some, but not many improvements to the pattern I've posted before. If these were OEM Dana gears it would have probably shown a much better pattern.
I could not shift the drive pattern closer to the root as the backlash would suffer in that case. When I was satisfied, I installed the new bearings. The carrier preload was also added. It was .006" total. (2 shims of .003", 1 on each side)
The new bearings shifted the pattern a little to the toe side. The backlash is .005". I set it up on the tight side of the spec as I suspect that it will wear in.

Before installing everything for the last time, I cleaned the housing one more time. Using a steel wire brush on a couple of extensions for wood drill bits, and a drill to drive it, the last crap in the axle tubes was cleaned out.
I then installed the new bearing cup for the pinion, with the correct slinger and shims. The pinion preload was then set at 25 inch pounds. To torque the pinion nut I made a simple tool from a piece of metal strip. Prefer this method to ruining my new yoke with a big pipe wrench (that I didn't have in the first place) I bought a 2nd hand inch-pound dial indicating torque wrench to set the preload.
The pinion seal, new pinion nut and washer, and pinion seal were then installed. I installed the new carrier and torqued the caps to spec.

To catch all the metal particles from the break-in, I've glued in two neodymium magnets next to the carrier. The sheet metal cover was then installed. Before the final installation, I straightened it as best as possible. It always leaked some with the gasket due to the bolts deforming the holes. I also ran a file over the gasket surface and it showed a lot of burrs and displaced metal. This may be another source of leakage. I've read of good experiences where people omitted the gasket entirely and only used RTV. I might try this after the break-in.

Break-in will consist of 20 miles of driving and a complete cool of the differential. I'll repeat this once. Then 500 miles of gentle driving, before draining the break-in oil and topping off with fresh oil. I'll remove the cover and clean the magnets at this time as well and recheck the backlash and pattern.

The next task is to rebuild the leaf springs. Stengel Bros supplied new U bolts and bushings. Hope to start tomorrow.