Fully rebuild, or partial rebuild? Pinion, ring, spider gears, pumpkin, bearings? Rebuilding it FULLY and PROPERLY is a big story, one too big to relate here, and it takes quite a lot of special tooling (differential spreader, dial indicators, etc). Please don't attempt this unless you have a well equipped shop.
If you just need to replace the spider gears, that's easy. Drain the oil, remove the cover, rotate the pumpkin until you can unbolt the crosspin. Push/pull the crosspin out, rotate the spider gears until they come out. Remove the side gears. Remove all four thrust washers.
Replace all four thrust washers, then the new side gears, then mesh the new spider gears with the side gears & rotate them into place. If the crosspin hole won't line up, rotate one axle shaft until it does. Install the new crosspin and bolt it in. Replace the cover gasket and cover, refill.
Going further requires a LOT more work, but you'll need to remove the spider & side gears first anyway. If you're replacing bearings or the pumpkin or the ring & pinion, you'll need a bunch of new shims to work with until you can get the ring-pinion clearance exactly right. You'll also need a differential spreader to get enough space to remove/install the pumpkin with its bearings in place. If you're replacing the pinion gear, you'll need to take some painfully exact measurements or you'll NEVER get the ring/pinion clearances correct.
SOURCE: Dana 60 axle seals replacement
changing pinion seal on 79ford e-250 dana60.are there any cautions or recommendations concerning torque or preload.
Dana 50 Front Axle
Observe the following torques;
* Left and Right drive axles-to-cross member: 120-150 ft. lbs. (163-203 Nm)
* Axle arm-to-radius arm: 180-240 ft. lbs. (244-325 Nm)
* Coil spring insulator: 30-70 ft. lbs. (41-95 Nm)
* Upper spring retainer: 13-18 ft. lbs. (18-24 Nm)
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Dana 60 Front Axle
Observe the following torques;
* Drive shaft-to-flange: 15-20 ft. lbs. (20-27 Nm)
* Track bar nut and bolt: 160-200 ft. lbs. (217-271 Nm)
* Stabilizer link nut: 20-30 ft. lbs. (27-41 Nm)
* Stabilizer barU-bolt: 50-65 ft. lbs. (68-88 Nm)
* Spindle connecting rod-to-knuckle: 70-100 ft. lbs. (95-136 Nm)
* Front spring U-bolt: 95-100 ft. lbs. (115-135)
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