Jerry,
That's pretty much what I figured. That's why I've always farmed out this kind of work in the past. Let the experts do their thing. I was figuring on flushing the axle housing and install new axle bearings/seals while I had the differential out. I will probably just drop the carrier and take that to a shop. Let them give it the professional once over.
Currently, I have motion in the pinion, not really in/out, but up/down and side/side. Could be bearings are gone. I hope it's not wear in the carrier. I did see a 1955-2nd series 55T carrier on ebay when I was looking earlier.
I have worked on the later model differentials (non-3rd member) before with varying results, usually good, but I prefer to let the experts handle it.