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How do you all get 6.2s to 300K miles

If he used a diesel compression tester on it and only got 180! that's in poor poor shape! you should see on a perfect engine 400 psi. my 93 with perfuse blow by has an average of 250 psi across the cylinders. still runs but low on power and uses oil.

I would get it up on an engine stand, install a starter. pull all 8 GP's out of the block. make sure you have two good hot batteries and some heavy heavy battery cables not jumper cables. and re-do that compression test.

on the rear diff, it looks like you had some moisture and some wear on the spider gears. doesn't look like a show stopper to me though. check you case vent to make sure it's not plugged up or located in a spot where water would get in. also I would run some full synthetic gear lube in both front and rear. since it's a 4x4, look into getting you a locker for both. that way you can have full lockers and run with the big boys! running with I call the "one wheel wonder" spider gears when you are in a situation you need 4x4 traction can get you into a pickle!!!
 
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