I've done differential work on Dana axles. I LIKE doing gear work. I hate doing gear work on Danas. A lot of special tools are required to do the job properly when you're changing ratios like that. 15 years ago, when I had a Dodge Dana 61 I wanted to swap the gears out of a Dana 60 into, I took it to Inland Truck Parts. I had the bearing and seal kit for it but they needed a different carrier because Dana 61s were specifically built for 3.08s - a ratio that won't work in a Dana 60. I took in a gutted axle housing and the parts I had and left it there and figured I'd be doing good to get it done for $500 in labor and I figured the carrier would be way expensive. It was $80. The whole bill was around $250. Yes. I'm a mechanic and I basically have NEVER had someone else fix my vehicles. But for THAT job, I will pay gladly EVERY time.
Danas SUCK to set up properly when you have all the right tools and it has to be damn near impossible to do one IN the truck without them. The problem being that in the truck, the special tools are nearly impossible to use. On a Dana the differential carrier bearing preload is set by SPREADING the case sideways to a maximum of about .005" and then sliding in the carrier and releasing the tension on the case to provide the preload. That's what those two round holes to either side of the differential carrier are in the housing. They're where the spreader tool lugs go into the case to force it apart. I've heard of guys using big prybars to force the carrier in without spreading the case but I don't think there's any way it was set right when they finished. In fact I KNOW they didn't because you have to use a dial indicator to measure case spread while you're spreading it and do some calculations using set-up numbers for the gear set and axle housing to determine clearances and determine preload. and they probably spent more time and effort half-assing it that it would have taken to get the tool and do it right. I think it could be done fine if you're just pulling the carrier to put in one of those LS units that replaces cross shafts and pinions. But when replacing bearings and setting one up fresh, the only way to do it right is with the tools. And good truck shop that does lots of gear work will have the tools and experience to do it right. Here in Nebraska, that's Inland Truck Parts. And they're all over the country.
Rather than rolling the dice on a used rear-end, I'd make arrangements with a place to set it up for you as a carry-in, get the parts yourself according to what THEY tell you to get, and take it in stripped down and cleaned up so they can go right together with it. I'd say any DECENT rear axle you find is going to set you back close to $1000. You should be able to EASILY get yours rebuilt for that an maybe have a little leeway for an LSD or new bearings on the axle ends. Taking in just an axle housing is what saved me a bunch of money on mine. It's a LOT easier to have that axle laying in front of you on stands than to do one under the truck. I was working at a New Holland dealership when I had to do that Dana 70 tractor axle (drop boxes and gear reduction at both ends) that I fought and fought and fought. And WE had all the special tooling. After that experience, I took mine to Inland, and the next time a tractor axle came in I took IT to Inland too. Even with half a day in hauling it to them and back, we still came out WAY ahead just by marking their labor up mildly vs. what it would have cost ME to spend a day or more doing it. It was a win-win-win. I like those.
Attention: TDR Forum Junkies 
It is not the compression on the housing that sets the preload,it is shims behind the bearings
