As a preventative measure i bought and had an Auburn LSD installedon my 03 1500 4x4. I was hoping it wasnt for nothing as the truck has 41k on it and i just bought it in January. My installer confirmed my fears and indeed the factory LSD was coming apart.. chunks of metal in the fluid. Since i didnt install it myself (thank god) i can give you some of the rundown he told me about the install.

It required removal of the rear wheels to pull the axles outward, the carrier bearings had to be replaced because you have to heat the Auburn unit so greatly to expand it that it was worth it to just put new bearings in. It says specifically not to use a torch for uneven expansion concerns. So he had to have a machine shop do this. But after that it went ok and everything was installed as intended.
I used Napa 80w90 gear oil with the Auburn supplied Friction Modifier... i assume this is ok..

That's all folks