I have a 2500 with a Dana 60 rear axle. I noticed the drums were soaked with gear oil so obviously I have a leak. I haven't worked on this axle before so I am not sure what to replace. Looking at the manaual it looks like I would need to replace the flange gasket on the axle. Does this sound right or should I pull the hub and repalce the grease seals and do the bearings at the same time?

 

just pull the axle and hub off and replace the seal and you will be good to go...

 

Replace the grease (oil)seals inside the drums and the flange gaskets.
Inspect the bearings while your in there.
Replace the brake shoes if they are oil soaked.

 

I think I am just going to replace the bearings while I have it apart. They have over 100K so I am sure I won't be wasting my money. I found this kit which seems like a good deal. Complete set of bearings, seals, and the bearing tools. http://quad4x4.com/Dodge%20Rear%20Axle.htm