I would use rather get the conversion joint than disturb the yoke.
If I was disturbing the yoke (or changing pinion seal) I would order a crush-sleeve eliminator in advance. Otherwise, the success of retorquing a used crush sleeve on used bearings is definitely not guaranteed.
Our manual V6 KJ...
You need the big hex tool to slide down the axle tube to adjust the carrier bearings for backlash and pre-load. I made mine with a big nut welded to each end of a length of 1/2" rigid pipe.
I believe '05 is a mid-year change on the bolts for the 8-1/4".
If you get a r&p with 3/8" bolt holes, they it will work with a carrier that has 3/8" holes. Some r&P's have both sets of holes.
The No-slip is silent. It has some synchros that the other lunchboxes don't have.
Edit: Torsen types don't lock up. I have two buddy's that abandoned them for that reason. One was the OEM dodge ram type ('06) and the other was a Ford Motorsport one.
No-slip is a lunchbox style, truly drop in. Spider gears out, locker goes in.
A full carrier replacement like @duderz7 requires proper shimming to get the backlash right.
I had a clunk like that.... It was the CV axle banging around in the housing on the passenger side. New CV, intermediate shaft, and bearing/seal was the fix.
It's to alleviate tightness, noise, and excessive tire scrubbing... which is common on new units.
I've left the modifier out of my limited-slip axles for 20+ years (all used units) no problems; just good traction. Except - when the unit itself is inadequate for the tires, power, and payload...
Somebody may have overdone it with the friction modifier additive.
Try flushing all the oil out (brake-kleen, etc) and reload with basic gear oil. See if you get any grip back.
Fwiw, I haven't put modifier in our KJ in 13 years. Several gear-oil changes later. Grips just as well as when we got it.
I am at about 3" lift and have not had any issues with the CV axles. It's is a gas V6 model though, and I dropped the engine cradle about 3/4".
I thought the CRDs axles were slightly different lengths for engine clearance. (Diff mounted further offset?)
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