I don't know how I have missed this, or how long I have missed this for, but I noticed on the inside of the front tire is caked with grease. I first noticed a little bit of oil when I took off the front wheels about a month and a half ago when I did a front brake/rotor/caliper job for the car. I cleaned it up real good thinking it must have been leaking brake fluid. But I took a closer look at it again today after I parked the car and noticed a very thick wall of greasy oil. It's quite sticky and it leads me to believe that this is gear oil.

One of my friends told me it looks like the axle seal may have worn out over a long period of time and it finally just cracked. I have never done an axle seal job before, but I know there are several good write ups on the forums of how to it. My question is, is my buddy right or could it be something else. I haven't checked the diff fluids in quite some time and right now I am scared to lol.

EDIT: It's too damn dark out now, but I'll see if I can get a picture of it tomorrow during the day

 

I think your friend nailed it.. I replaced the front seals on an 02 GC.
I researched it pretty good and the more I read the scarier it got.
*Once I decided to do it, it was really VERY easy. No housing spreader, special tools or anything other than normal sockets 'n wrenches. I think I spent more time worrying about it than it took to actually do it.. I did dent up one of the seals pretty good (they're really thin) but over a year now and no leaks. Sorry, I can't find the write-up that helped me out, but i'm sure you'll find one.

 

i just did mine again last week. used a 32mm or 36mm socket (can't remember) and about 6 half inch extensions and shoved the socket down the axle tube from the knuckle until it came into contact with the seal. then a few good whacks with a bfg, the seal popped out. (be sure to have the carrier removed).

do that with both sides, then i used a 28mm or 30mm socket (again, can't remember) to sit the open end inside the new seal and again using the extensions and a hammer to whack the new seal in place. i used some rtv on the new seals before i installed them to help seal it in place.
just make sure they are fully seated before you install the carrier, otherwise you might tear the seal from the carrier bearings.

all in all, it's pretty easy. just sounds scary.

also, this is for a non disconnect housing. if you have the vac disco, the passenger side is a little different.

 

easy fix, if u dont have a set of super long extentions go ahead and get a set

 

First, make sure it is gear oil (not brake fluid or grease)...you can't mistake the smell of gear oil.

 

What he said.. After I posted, I wondered if maybe you had a damaged boot on a CV joint.. They'll throw out a lot of 'sticky' grease.

 

smell it. if it smells dank, it's diff oil.