Im working on my First dana 60 It had a strange noises coming from it. I took the cover off of it and found the carrier slopping back and forth almost a 1/4 inch.

I figured diferrential bearings for sure Well I dropped the carrier and sure enough the ring gear side bearing was bad.

Now the bad part, the same bearing race ground a 3/16 groove into the housing adding to the slop of the differential.

Even with a new bearing, with that race groove in the housing it wont be fixed.

How can I fix this?? Different housing?, can it be machined, or just a whole nother complete rear end?? Thanks mike