I grabbed this image from Summit Racing and circled in red the shoulder on the pinion where the preload shims go on. Then the outer bearing, then the big washer/slinger, the yoke, another washer, and finally the pinion nut to hold all together.

 

It looks as though someone lost the oil slinger and used a stack of improper shims to try and make up the thickness. This may be where your rubbing sound is coming from as you have removed the shims. Also try preloading the pinion drag to that about the same as you would a front wheel bearing.

Max

 

What you have to do is take off the differential cover, let it drain, take off the carrier caps and carefully take out the carrier. Inspect the ring and pinion for damage. If they look good, they can be used again. Then look at the inner bearing and the race it sits on inside the housing. Look for marks in the bearings, or change in color - this would indicate damage. If they look good you don't need to change them. But once you have it out, it may be good to change them anyway. But if you do, it gets more complicated, and then you have to be very careful not to screw up the pinion depth shims, which will be placed either under the inner bearing and the pinion head, or under the inner pinion race inside the differential.

If you want to try a hail mary, just install new preload shims that match the ones you took out, and see how that feels.

 

Frankly, none of your options for fixing this are easy or cheap, and they all have risks.

1) Take it to a good shop that does this type of work and have them install new pinion bearings, set the preload correctly. But then hope that whoever messed with the diff earlier didn't screw the depth or backlash, because if the shop has to set these also it become much more expensive.

2) Go to the junk yard and find a good used axle housing and just slap that on. Very time consuming too. Plus you are not guaranteed this one will not have issues either (I did this and found out the previous owner had messed up the preload shims the same way yours is).

3) Install the preload shims yourself. You will need patience, some tools (inch pound torque wrench, micrometer and jam nut instead of the pinion nut to test it - then when you get the correct preload install the pinion nut - if you test the preload with the pinion nut you will strip the pinion threads).

4) Or try your fix, which sounds like a lot of work just to get around a problem you will still have to fix.

Sorry your are going through this. I have been there and it sucks, especially if its your only vehicle.

 

This is what I was looking for. The order... There was a large concave shaped washer.. that went back in.. I will try to put some new shims in. Is it normal to have like 6 shims? Seems overkill. And honestly my realistic option is 2wd... Or buy a used axle and bolt it in... I have zero experience or tools to install diff gears and the required knowledge to set preload, lash, etc... I greatly appreciate everyone's input. You guys are extremely helpful

 

I have a 2000 trans am. She's my baby, I don't drive it much. And never to work. as I'm a painter and I don't want to get paint on the interior, or carry my tools. And generally parking sucks because it's a new place every couple days

 

Honestly, your 2wd original plan is your option then, because to install the preload shims you will need to open the diff, take out the carrier and pinion - which is more than you want to do.

 

Actually, if you don't care about fixing the preload and are fine as 2wd, put in a new pinion seal, put lots of red lock tight on the pinion nut, then tighten the pinion nut only to the point where there is very little play (up/down) on the pinion shaft. Do not tighten it to spec torque. You want it loose, this will take off the tightness in the pinion bearings that is causing the bearings to heat up.

Then just take off the front drive shaft that comes from the transfer case and connects to the yoke.

Done!

This way you don't even have to mess with the ujoints in the axle shafts and you keep the seal of the inner axle seals.

 

That's an interesting idea.how much torque you think? Just so it's snug?

 

tighten the pinion nut only to the point where there is very little play (up/down) on the pinion shaft. Do not tighten it to spec torque. You want it loose