If the rear end is smoking, as you mantioned, it means there is some serious friction happening inside and is ready for the scrap heap.

 

changing a rearend is one of the easiest jobs on these cars. its like 5 bolts and a brake line and its out. if you can get a complete rearend with disc brakes its a piece of cake. i would look around and price a couple rearends before you pass on it. where you at ill buy it if its close?

 

Updated on the rear end???

did you open the rear cover? take some pictures and post will have a look see visual inspection.

IF the rear went dry... and smoke was coming from the internal parts NOT BRAKES that sucker was hot! I would have to say a rebearing and total rebuild with ring and pinion are going to be necessary

IF it was coming from the BRAKES...which is more likely then pull the wheels fix the brakes double check your gear fluid and RUN IT.

Jim