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So I hope this helps some. I recently tore down a78-79 ford250-350( got it from someone else) dana 60 rear axle. I am tearing this axle down to get setup to stuff under my 05 jeep tj. So to start I cutoff all the old brackets with a cutting torch. Next I moved on to removing of the axle shafts. Since this is a full float this is as easy as removing the 8 5/8” bolts that hold the axle in place.
After removing the axle shaft there will be a 2 and 9/16” nut. Here is a link for what they look like. http://www.pirate4x4.com/forum/newbie-general-4x4-discussion/593316-dana-60-rear-spindle-nut.html You can do one of two things here, either get a 2 and 9/16” socket from your local auto parts store or use and chisel to make a purchase on the nut and get it loose that way. Before you try and remove the nut make sure to bend back the retaining tabs that help keep the nut from losing. Now that you have removed the first nut ( yes there are two of these huge beasts) remove the retaining ring, this may require bending the tabs your previously bent in order to remove. Now there should be another nut (again 2 and 9/16) remove that one as well. Depending on how long and where the axle has sat the drum and hub should slide right off, if not get of the BFH and beat the holy hell out of it. Now if that did not work for you like it did not work for me it is time for a cutting device. I used my cutting torch but you could use a cut off wheel on a die grinder or hand grinder, in the long run though the cutting torch( if you have one or can rent one ) will be the fastest way. What you need to do is go to the back side of the drum and cut around the mounting flange that should have four bolt of studs running through it.
Those bolts or studs run to the inside and hold the back plate on which holds the brake assembly on. After they are cut once again grab the BFH and deliver a couple good wakes and it should come off. Now for me I had a added benefit of once I got done cutting with the torch my hubs were warm enough that with a few taps from a hammer they came right out( some just fell out) and the hubs separated nicely. After all that is done the only thing left is to remove the diff cover bearing caps and take out the diff, I used a 24” pry bar to get mine out. I then flipped it over removed the pinion bolt knocked out the pinion and the removed the seal and knocked out the inner bearing race, for this I used a 15” punch for the job. Flip the pumpkin with the pinion side down hammer out the outer pinion race and that should be the last of it minus some grinding to clean the outer tube up and get it prepped for new brackets. Here are some links to some good reference pics.Dana 60 Rear Axle Page , Dana 60 teardown I hope this helped :smokin:
 
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