Pinion seal is replaced and ARB should actuate now. Started with the ARB. Using a air compressor we(cirbo) shot air into the valve where the Arb compressor lines to into the 3rd. We could see that the teeth were moving correct etc but also were able to see that air was in fact escaping thru the bottom half of the o-ring(actually called quad rings). We removed them but didnt see any damage that indicated that they were bad. At any rate still put in 2 new ones from ARB. Put it all back together and shot air... still leaking. Got ARB Tech on the phone... He walked thru a couple different ideas but in the end the problem was that the clip on the top that holds the stuf(name of part escapes me, its ventillated and the clip has a tooth that goes into it)f in place, when tightened down was bent too much and was causing the housing for the o-rings to move outward creating just enough of a void to allow air to escape... Put in on the metal break and re-bent it a little bit, screwed it back into place and BAM... Seal was tight and when air went in it stay and locker was actuated. Before I put 3rd back into truck this weekend I am going to hook it up to compressor and make sure that the air seal is still tight but i dont expect a hiccup. Checked backlash, run out, and used the gear grease to ensure the teeth were hitting where they should. all in great shape.
The Pinon seal was next. Removed it and saw that when it had been put back together, it had been painted with some pretty thick black paint. over time that paint had started to chip away from the rubber seal and the flange parts also allowing a very small void to allow oil to pass thru and spray everywhere... Replaced the seal, tapped it into place and everything is ready to go!
Thanks To Cirbo for the patience and explanation as we did it all step by step. I know fully understand the meaning of all the terms and steps used in setting up and discussing diffs... at least most of them
3rd goes back in hopefully this weekend...
Thanks for all the advice. Hopefully I can return the favor and help someone when they need it.