Well, Sunday was spent at my buddy Adam's place to fix the axle.
I ordered the whole gear installation kit from Randy's Ring & Pinion, which included pinion bearings, carrier bearings, shims, 2 crush sleeves, pinion seal, new pinion nut, and cover gasket. Oh yeah, marking compound & a brush too. After about 4 hours of working continuously, we were done.
The larger pinion bearing (towards the gear, not the driveshaft) was toast. The cage had rubbing marks on it, and it almost fell apart. We replaced all the bearings anyway, even the carrier bearings, and re-set the backlash. We also tied the fly-weights on the gov-loc shut, so that they can't fly open & lock on the street anymore. Kind of a bummer, but it's best that it does not lock.
End result: no more howling! Woot! It's super quiet now, and I'm stoked. The gears looked fine too, even after driving it for a week with the loose pinion.
I guess the next step is to look for a locker for this axle.
Anyway, I hope this thread may help anyone else out who is looking to do the same axle swap. Everyone usually goes with the 14-bolt, but it's really overkill for my intended purpose.
Clay