I was able to take the axle apart last night. Unfortunately the previous owner tried to fix this once already. If you don't know what you are doing then get help before just throwing parts back in it. So here are some pictures of what I found when I removed the housing on the passanger side. Not too bad but have to wait for the new shim to come in. Got the new shim which is 1.27 and the GM part # is 15588376 - $5.09. Since I have the housing apart I am going to go ahead and replace the outer seal and bearing as it looked like it may be leaking a little bit. The Outer seal is GM part #22761722 - $24.27 and the outer shaft bearing is GM part# 26041515 - $37.48
When whoever shouldn't have been wrenching on the front axle put it back together they failed to install the gear over the shaft with the circlip in place so it never had a chance and because those parts were able to move up and down the axle shaft the shim came off and wedged itself, thankfully there is no other damage that will keep the four wheel drive from working. I will also take this opportunity to drain and refill the diff with some fresh fluid. My new shim will arrive tomorrow so after I pick it up and get home I will put it all back together and test. More updates to follow.
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