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I started tearing down the rear suspension with the intent to install new bushings, ujoints and any other needed repair. I pulled the halfshafts tonight and I did find what I think is a problem with Ujoint. Please see picture notice the black grease area around the right of the differential side yoke. While rotating the half shaft on the right at one particular point it would lift the T/A up about an inch at the same point in rotation everytime. I'm thinking the UJoint was possibly frozen up, and I'm assuming the black grease all around the right side is from the UJOINT?? ALso on the second pic, can I replace this body bushing with out too much hassle??
It's hard to tell from that picture but I would be more inclined to think that the seal on that side of the diff is leaking.
That's a lot of sludge, way more that there is grease in the U joint. Just know that you are about to open a pandora's box once you start replacing things if you want to do it correctly, look in to a rebuild kit for the rear.
Also, you should be able to replace that body bushing, but you may want to do them all at the same time. to do just the one, it may be neccesary to loosen several of them.