The gears will be shiny because of wear. If they were not whining before the grinding started you should be fine.Sounds like you broke a axle. But the question is why did the axle break. I would put the complete rear end on jack stands, disconnect the driveshaft, then install the new axle, and C-clip. Then rotate everything to feel for any binding.

 

If ya want to take the brakes on the other side apart yeah pop the seal on that side as well while you got it open... now's the time to do it...

 

No problem! We'll be here if you have any more questions...

 

well the parts on ordered. wont get in till tomorrow or sat. gonna cost under $150 to get her back on the road. guy at the dealer ship asked me how the axle stayed in told him the back break kept it front coming out. he said he doesnt understand how it kept it from coming out. because his chevy wouldnt have done that. lol i just kinda gave him a weird look and said well cause its a ford. dont understand how you can work at a ford dealership and drive a chevy

 

He probably ha drum brakes on his chevy. If my 97 would have broke a axle it would come out as I have drums still. Currently working on getting my rear disc brackets made.