newer permatex good or bad sign?

I just picked up a 231 j for mt 90 mj (mine broke in half) I pulled one out of a 89xj for $50. today I was cleaning it and noticed that there is fairly fresh permatex at all of the seams. is this a good or bad sign?

Depends on if the person that opened the case up knew what they were doing and what they did. They may have just resealed everything. Could be a great thing if they had knowledge of what they were doing. Could be a nightmare if they didn't. I know this doesn't help much. Good luck!

Put the case in 4wd, grab both outputs and turn one back and forth, feel for slack in the chain. Focusing on one output at a time, try to move it laterally and feel for slop in the bearings.