Need your opinion. To rebuild or run as is?

And you can feel that without an indicator. A couple new seals, spray it out with some break clean, pop on the cover with a new gasket and fill her with the proper amount of regular 80-90. Don't forget the brakes. I don't know about the 8 1/4's. Do you have to pack the axle bearings like the 8 3/4's?

Nope, they supposedly get oil from cornering.:D
Not really, but that's how I feel about them.
Just fill it and go.

I feel the same about the backlash, as 1/4 inch back and forth click of the outer edge of the ujoint saddle is just fine.