Looks like he put too much preload on the pinion and/or forgot to put oil in it (judging from the burn marks).

Glad you are being compensated.

Just be sure to clean everything very well before assembling... don't forget the wheel bearings either as they are lubed from the diff oil.

Oh, and check if the pinion race(s) spun in the housing... if they did, I see a new housing in your future. I imagine the outer bearing seized and welded itself to the races. Why no pics of these parts? That outer bearing must looked interesting.

 

The housing has a small mark/scare inside. But nothing major. No pic of the out pinion bearing because it wasn't found. I figured it seized and welded itself too and when this happened it exploded into pieces. This happened on the highway so couldn't really backtrack my line of travel trying to find pieces/parts. Oh, and the diff did have oil in it.

 

I'm glad I hear this all worked out and it wasn't a DS issue.

 

Update: got jeep back yesterday. It now has 4:56 gears, ARB air locker in rear, atlas transfer case, and Tom woods 1310 drive shaft. The jeep tachs at about 2500 rpms going 70 and it is a 6 speed. The atlas is bad ass! The drive shaft is about 6" longer than stock and very well contructed

 

I was wondering how this all turned out for you. Glad to hear you got it all taken care of. Even though the installer messed it up the first go round I'm glad to see he owned up to it and got it all straightened out. I'd keep giving that guy my business for sure, I try to support a man with some integrity whenever I can.