I would suggest getting new bearings for the setup bearings. The old ones arent gonna be of much use after you take them off. You can pick them up at any parts store (usually listed as "differential bearings"). I think I still have my setup bearings.
Yes, Dana axles are a bit of a pain.
I went though this whole SNAFU with my axles, as ReadyMix can testify.I did mine when the axle was out of the truck, and that was hard enough. After you get the hang of it, its not that bad. A few days ago, I set my friends 9" on his Br*nco in about half an hour.
I used a digital micrometer to measure the shims, magnetic dial gauge to measure backlash, and gear marking compound for the pattern.
Where are you in WV? If Im not busy, I might be able to swing on by and offer a hand...