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You might want to pop the rear cover off just for curiousity sake. I think the cover gasket is under $10 from Toyota IIRC. If it turns pretty easily I'd say throw it in and find out how it works. The rear diff is fairly easy to R&R so you aren't out a whole lot if something is wrong. You really can't see anything inside the factory LSD when installed anyhow. Unless you have a zillion miles on the rearend the gears are probably acceptable. And I'd run it a few hundred miles and change the oil if all goes well. You should be able to check for metals then.
 

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If you are going to do the front seal I'd just do a full rebuild. To do it right you'll need to remove the side shafts, the differential/ring gear section, undo the front nut and remove the pinion shaft. Since you have the pinion shaft out you should replace the two pinion bearing (as well as the side bearings on the diff). Then you'll need a new crush sleeve and nut and reinstall. If you replace the 4 bearings and 3 seal and related parts all you would need is a replacement diff like a True Trac to finish it up. All the bearings, gaskets, and seal will run you about $150 or so from Jeff. Something like a True Trac would be ~$350 and about $150 for all the labor.
 
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