I paid a gear company in Hayward California that worked with The company in Casa Grande Arizona, I forget their right off the top of my head but real nice people to work with. The company Pete's Gear Shop actually installed their first 3:55's for a person out here in California and worked with them for the installation guide they tell me so upon their recomendation I took it to Pete and paid him to install it.

I did zoom in on the pictures last night and one was pretty good and it does look rusty so I think it was as you said in #1 already cracked and failed. I am going to drop the cross member so I can drop the torque tube and get a better look in there and install the new Okie bushing, I did the Okie bushing myself and I received the wrong one first and returned it and got the smaller one I needed so I am pretty sure the Okie bushing was correct. Yes there was oil in the ball, it was smoking when I got to the truck and I could smell hot gear oil. I think I am on the right track, thanks so much for your help Sweet.