[Hummie2]

[quote=HummBebe]I think you (and rckrawl) are definitely on to something.....!

Questions:

If the flex causes the pinion gear to shear off ring gear teeth, then this would occur under extreme "Flex" conditions? With IFS???

Don't confuse suspension flex with housing flex (distorsion). The housing distorts out of shape from the torque load on it. You could do it on smooth level surface if could apply enough torque to the axle ( example hard acceleration).

If the case has been flexed, ring gear damaged, is the housing still useable???

Its iffy. If the tech could read .022" backlash upon disassembly ( assume it was within spec when new) I would say the housing was sprung to some degree. Will it happen again? it might if the axle ever sees that much strain again.

Should I have the differential housing inspected? Replaced?

If it happens again, definitely.

Would a housing made from a different material (H3's are aluminum) be more stable?

The housing looks pretty light from the pics, heavier casting w/billet bearing caps would be better. Nodular iron would definitely be stronger.

Is there any manufacturers who produce a Cast iron or some other type of Steel housing?

Yes. There alot of options. How strong do you want to go?$$$$$$$ I think I will wait and and see how the General addresses this issue. You can bet they know they have a problem by now. I bet they are doing tests to see how much torque it take to distort those housings. Anything YOU do will void the warranty.
I fought housing flex in certain Dana 44s (they are not all cast the same) before. Bottom line: when I reinforced the housing and stopped the flex(distorsion) I stopped breaking ring & pinion gears.