Looks like your pinion was all like "nom nom nom" on your carrier
Yeah... crush sleeve axles you NEVER... EVER go with any kind of "torque spec" for the nut(despite what any factory manual says). You tighten then nut until all play is out of the bearings(pinion not flopping around), then you torque it until there is sufficient preload... not sure about Toy axles but Dana axles normally go for about 10-20in-lbs or rotating torque and it's good. Now if you happen to go over the 200 whatever ft-lb "spec" or whatever it may be... and there is still play in the bearings... you have a bad crush sleeve and you gotta replace it because it's not deforming like it should.
When it comes to replacing a seal on a crush sleeve axle, you use a chisel to mark the pinion nut and the pinion shaft in relation to each other... then remove and do what you gotta do, when you reinstall, you torque the nut down until the marks line up, and maybe 1-2mm more at the most. Also always use threadlock when reusing the pinion nut since they're technically one time use interference lock-nuts.
Here are a few regear write-ups I've done, skip towards the end about pinion preload for the parts applicable to you.
http://www.jeepforum.com/forum/f9/re...tj-d44-970997/
http://www.jeepforum.com/forum/f19/r...xj-d44-992471/
Actually... read the whole thing and just substitute your Toyota specs for the ones I have listed... it looks like you'll be regearing it anyway
