Dana 60/70/80 axles use shims between the inner pinion bearing and the pinion head to set pinion bearing preload. If wear on the pinion bearings is enough to allow the pinion to move around a little, then removing a few thousandths worth of shims will usually get you back into spec. If memory serves, the preload spec is measured in how many inch pounds it takes to rotate the pinion shaft. Should be around 8 for used bearings and 14 for new. This measurement would be done with the ring gear removed (it has to move to get the shims out anyway) and the bearings oiled. The pinion seal may affect this measurement, but I'm not sure how much. To be honest, if you remove just enough shims to get the play out, then you should be good with used bearings. A new pinion nut is good insurance, but unless yours is damaged or has been on and off lots of times, locktite will be fine.