Rear Diff Oil and Red Fluid on driveshaft

Will this fluid work for the rear diff oil in a 06 DCLB Sport?
http://www.castrol.com/castrol/sectiongenericarticle.do?categoryId=9012228&contentId=7036192
And if so, should I add friction modifier or not?

While under the truck I noticed a small clean drop of red fluid on the bottom of the round metal housing that connects the drive shaft to the transmission. Is this an indication of needing a new output seal?

Thanks!

 

Pretty quiet in here huh?

 

I have that same drop

 

Read the bottle on the oil jug to make sure it's got the friction modifier required for a limited slip differential and not just compatable with a limited slip differential. A lot of gear oils say limited slip compatable but that means you still need to add the friction modifier to make the LSD function properly.

As far as the fluid, I think I'd be looking at changing that seal if I were you.

 

RED fluid is your automatic transmission so you need to change seal and make sure transmission fluid level is correct.

 

Thanks everyone, I went ahead and changed the diff out with some new fluid and additive. I replaced the leaky seal and will be compiling a DIY on it for TW.

 

Was it hard ? I havent bothered because its so minimal

 

Easy as pie, and it may seem like an insignificant leak but mine was at least 1/2-3/4 quart low when I topped up after fixing it.

Id say do it, and if you need some pointers check my DIY write up.
Should take 20 mins and about $20 for the seal and a quart of Toyota WS ATF fluid.

Ive been checking my housing everyday since doing it and no more leak!