Took my hub apart yesterday to see why it wouldnt engage.I was going to replace the armature plate.Well looks like more is messed up.The armature plate had stripped the some of the lugs off of the plate and cut into the clutch cage letting the hub get play in it and loose oil.Now it needs a plate,clutch cage,one bearing,and the seal race which I can get off.So it looks like a trip to the dealer.Hope he lets me take it part and helps me get the thing off.Anyone else had this happen?

 

The older 4x4s used a lock nut instead of a cotter pin to lock the wheel bearings. That lock nut needs to be checked
every once in a while because it will back off. If you dont catch the play in the wheel first then it leaks oil out and water in.
Then it gets to what yours is like iI guess. Never seen one go that far.

 

A bud of mine had that happen on his 95 425. About all you can do is rebuild the hub. If the axle shaft is buggered up, be sure to replace it with a new one that is drilled for a castle nut instead of the locking nut. It might even be worth drilling the one you have as the castle nuts & cotter pin are far more reliable than the locking nut.

Farmr