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2003 F150 Rear Differential

Hey all,

My girlfriend has an F150 4x2 Supercrew XLT with the 4.6 EFI V8 with a 4 speed od auto trans. Truck is lifted and has 33's. We had an issue about four months ago where the tranny tailshaft housing got chewed up. We replaced it with a longer housing and it seemed to be cool. A few days ago she was on her way to work and heard a serious clunk as she turned a corner and another clunk when she turned in to work. She limped it home that night. We had a good mobile mechanic come out and go through it pretty well. One of the U bolts on the axle was definitely loose and thought the clunk she heard was it. We had a few other issues we had taken care of but it seems we have a larger issue. It sounds like the rear differential gears are screwed. I'm pretty sure she has the 3.08 but not 100%. I guess what I need to know is what can we replace it with and what would changing it do of we went to the 3.55 or 3.31. We don't have a ton of cash to spend, next to none after the $700 we just spent. So any help would be greatly appreciated with somewhere we can get what we need on the cheap.
 
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