Hi. 2004 GC Limited 4.7. The other night my daughter was driving this vehicle, and the left rear wheel was SMOKING. I jacked the car up and the wheel would turn, then lock up. It seemed to lock up in one spot in it's rotation. The right wheel seems to be fine.
I took off the caliper. Same condition. Took off the rotor. Same condition. I pulled out the axle, then put it in, but not far enough that the bearing contacts the race, same condition. I am starting to fear that it's something internal. Is it possible that if someone put in the wrong fluid it would cause anything like this? The fluid looks kinda clean.

 

Not a wrong fluid problem, more like a lack of fliud problem. Check all of the bearings. What did the old oil look like when you drained it?

 

the fluid level is just below the fill hole. it is brand new. we actually bought this vehicle a week and a half ago. i was just wondeing if the mechanic at the car lot didn't put additive in it. i am just grasping at straws at this point.

 

I am pretty sure at this point that the "smoke" was coming from a bunch of oily crud built up on the e-brake shoe. They were also adjusted pretty snug. I cleaned them off and loosened them up a bit for now, and no more smoke. I will be replacing a seal and beaning, as well as shoes.

 

The additive won't do anything for an open diff, and the additive won't cause the gears or bearings to fail if it is not there. It's only to help the clutch packs in LSD axles.