Leaking diff?

[jdcobra]

I’m going to go out on a limb and say that this isn’t supposed to look this way...

 

[vortecd]

my guess is it is coming out of the breather on the axle tube. This has been a common problem. If it is, take the breather and screw it into the top of your diff cover and block off the axle tube. That is what I did to mine

 

[jdcobra]

Found the culprit