Replacing the wheel bearings is a bad idea. Usually the "hub" that the bearings ride on is destroyed also. 75-80 W series trucks use a 1 piece hub and rotor and it's expensive.
The best fix is to convert it to part time hubs now.
Is the truck 3/4 ton (8 lug)? If it is get the outer axles, spindles, hubs, rotors, etc., off a 3/4 ton Chevy (solid axle). Either Dana 44 or Corporate 10 bolt will work, the parts are the same, even auto locking hubs will work. You can keep your 203, you'll just need to drive in the HI LOC position until you convert the case to part time.
If it's a 1/2 ton truck, you can use the Mile Marker hub conversion, but it's expensive and not very strong. Because of the 5 on 4.5 bolt pattern the drive hub is very small, the ones used are OE on a Bronco II or Ranger.
The best way to deal with a 5 lug is to convert to the 5 on 5.5 bolt pattern used on later trucks. You can get the parts off and 81 or newer 1/2 ton Dodge. Again outer axles, spindles, rotors etc. In the rear get the axle shafts and drums from the later truck. but check the rear axle types first. Most 78 1/2 tons use the 8 1/4 style axle and most later trucks use 9 1/4, you may have to get the whole rear end from the later truck. You might be better off grabbing the complete axle assemblies front and rear and swapping them in.
The 203 is a chain driven case and the 205 is gear drive. The 203 can be converted to part time with Mile Marker part #501, it comes w/o hubs and retails for about $50, check with 4Wheel Parts. 203's are perfectly adequate and strong if the chain and sprockets are not worn out.
The 205 comes in 2 versions, the early 1 (up to 74) is divorce mounted, it uses a short driveshaft between it and the transfer case and won't work with your trans. Later (post 81) 205's bolt directly to the trans, but are only used in 3/4 ton and up Dodges.
81 and later 1/2 tons have the 208 case, which is also chain driven and physically much smaller than the 203 or 205. The 208 is not a bad case either and was used until it was replaced by the 231/241 cases in the Ram generation trucks.
Sorry for being so long-winded and I hope this helps some.