Yeah it seems to me that the front end is good. I drained the rear oil as well and other than some very fine black sludge on the magnet that seems reasonable for 50k km on the oil. I didn't get a chance to jack up the rear end and spin the wheels but I'm guessing that will check out fine. The t-case oil only has maybe 15k km on it so i'll drain that next and see what it looks like. If the t case checks out fine where do I go next? I should also say that my birfs were rebuilt maybe 15k km ago as well.
Thanks for all the help guys. Still looking into lockers!
If it were me I think I'd really want to jack up the rear end and spin it by hand to get a good feel for what is going on in there. Even though the oil looks ok, there could still have been some damage done.