I have had an 8" lift for about a month now with almost no problems. A few days ago I noticed a 5" puddle underneath my rear end after it had been sitting at work for 8 hours. The fluid is red and thin like ATF not gear oil and is coming from the pinion seal. The rear axle is rotated so the pinion is parallel with the driveshaft which probably starved the pinion bearing of oil and torched it. Has anyone ever heard of ATF in the rear end or of the pinion bearing and seal failing in a month or less after a lift and axle rotation? Axle is still stock 3.55 gears turning 35's, new gears are sitting in my garage waiting to go in.