Do I really need this?

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He would not loose a axle without it, but he will TRASH his posi and his carrier..

He could lose his axle without the s-spring. If you look at the way it is designed as you corner and your axle moves inwards without the s-spring which kinda acts like a guard around the c-clip so that it doesn't fall out. Without that gaurd I do believe that the potential is there for the c-clip to either come fling out (because of centrifugal force) or just fall out if the axle was pushed in when the car came to rest. Just my thoughts on it when I look at the way the spring is designed in conjunction with a c-clip.
 
The pin keeps the axles from moving in. Not the spring.
The spring does however keep tension on the clutch packs. Without it, you just have an open differential.
But, there's only one pin?

It's been a while. But, I thought that the pin keeps one axle in the differential and the spring keeps the *other* axle pushed in (actually, it pushes the axle outwards towards the fender). And, with the axle pushed in, the c-clip was in a recess that prevented it from coming off. Again, it has been a while!

Remembering things with the differential are very hazy. That TOXIC Ford limited slip additive still causes me to have horrible nightmare flash backs. ;)
 
I forgot to post that I did put in the additive. I was looking for the link in this thread to help another member and read the last two posts on it.
I didnt notice a horrible smell from the one I used though. I used the Trans-X friction modifier stuff.