Just my
from years in the auto repair business and many more years in the 4-wheeling hobby (including building and repairing them), but the Detroits are the way to go. Standard limited slips (with springs and clutches) work O.K. when new, but quickly lose their effectiveness. They also won't give any real traction for anything except snow driving, because they allow slippage. They are the more "street oriented" option, and generally drive nicer on the street, but if you are driving a bare-bones military vehicle already, and have no complaints about the lockers, then I would keep them. Yes, they can wear...but generally they far outlast a limited slip for useful life, and can last for many years and easily 100-200k miles if the fluid is changed regularly (every 30-50k miles at least, more if the vehicle is used hard).
For gears, there isn't much reason not to buy new for your truck. You can get quality ring & pinion sets pretty cheap, and they aren't all that hard to put in. Patience and attention to detail is all it takes. About the only special tool needed is a dial indicator, and you can pick one up for $25 or so. It won't be a high quality one, but fine for checking ring gear backlash, and you can use it to check brake rotor runout as well. The inch-pound torque wrench is nice, but not entirely necessary.
When the time comes hit me with a PM, I can walk you through the install process. For parts you'll want to price out a ring & pinion set and master setup kit for each axle. Make sure the kits come with new ring gear bolts...they are almost always 1-time use. You don't want to go through all this and have the bolts loosen and ruin the new parts. Make sure the setup kit comes with bolts, carrier bearings, and shims.
One thing to check on- most differentials have a split where a different carrier is required for different gear ratios. You'll want to find where that split is for each of your axles. You may get into having to buy new carriers (which will include the rear locker). And I'm willing to bet that estimate you were given doesn't include a new carrier, because thats about the price range for a simple ring & pinion swap.
The price given to you really isn't all that bad once you start adding up the parts. A quick check of Summit Racing shows $155 for gears for your front axle, add in $100 for the install kit (a Superior Gear one shown had the bolts, bearings, & shims), then add in misc. parts like RTV for the diff cover & gear oil and you are up to almost half of what you were quoted just in parts. If you have to swap carriers, it will get much more expensive very quickly.
The Auburn is a good choice for the front, or else a Detroit Truetrac. The Truetrac is a good compromise between a limited slip and a full locker. I put one in the rear of our Jeep Cherokee when it was my wife's daily driver, and when combined with the full locker in the front, was still able to so some pretty serious rock crawling even with 31s. Pics of it are
HERE and
HERE.
Jim