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looking thru my cheesy haynes shop manual, i see they mention setting yoke shaft backlash w/ snap rings, but no mention of the clearance required ..... also, pinion nut torque of 200 ft# mentioned, does this differential have a crush sleeve for the pinion, and if so, what is the proper pre-load ??? ....... **** questions, maybe, but experience has shown it's better to ask before starting a job, and the results will be more satisfactory !
I'm going to give you the answers you are looking for, however if you have never done one or don't have the proper tools, save yourself the money now and pay someone to do it. I say save yourself the money, because if you do it wrong you could ruin the diff.
The axle play should be set between .005-.0085. NO there is no crush sleeve on a Dana, it uses shims to setup the preload. You will need 20-25 inch pounds of ROLLING torque on the bearings. That is assuming they are new, if not about 16 inch pounds.