i noticed there is a little leak in the pinion seal but not enough to drip and what worries me the most is even in 2wd when slowing down at a stop light it has a kind of a rough sound and feel to it .. dosent really sound bad up to speed but 35s dont help with being able to hear anything lol

 

Ok, read back a bit, IS your pinion sloppy in the font (back....) of the diff?

Also, give the rear shaft a shake too. Pay special attention to where it plugs into the t-case..... any movement there either?