It sounds like the part which is in contact with the axle-tube is wearing into the axle-tube itself.
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On another note, it sounds like he is talking about the torque-tube going into the differential (per the rivets) :confused:


There is enough good in the worst of us and enough bad in the best of us that it does not behoove any of us to criticize the rest of us.
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Be yourself. If you are ever lost, It will be much easier to find yourself if you know who you are!