Yeah I agree that 99% of the time the harness from the Diff Sensor gets damaged on its way from the sensor to the inside of the cabin to the ECM/PCM.
The sensor definitely mounts on the outside of the diff ...not internaly!
There is an FSM out for ALL 2005 KJs Gas or Diesel that the rear Diffs may have had the wrong diff oil put into the diffs at the time of manufacture. This incorrect oil slowly chewed up the sensor.
Fix was for the dealers to drain the diff oil, clean out the diff, fill up with correct oil, replace the Diff sensor.
On my 2002 Export CRD I found a bad connection on the diff sensor.
After I fixed the problem the speedo worked but red CEL light stayed ON for about a week then went out.
