So ABS was working fine. Then I replaced the whole rear axle with a 97 axle I got from the wrecking yard. Now ABS is constantly working under normal braking. Then while on the highway the ABS light would come on, ABS gets disabled and then brakes would work as normal. Brakes all bleeded out, changed sensor with one from my original axle and still has same problem. Any clues to whats going on here?

There's no difference between the '96 and '97 rear axles. Did the '97 axle have the wire lead and sensor on the diff carrier? If not, you don't have an ABS diff. And that could be the problem. The ABS rear diff has a toothed ring that mounts on the ring gear flange. The sensor is inductive and will produce a voltage pulse every time a tooth passes by. That's how the ECU knows the rear wheels are turning or locked up. The only other possibility I can think of is that you might have too much or too little fluid in the master cylinder. I swapped out my rear for a 2000. When the fluid was high just after bleeding the system, I was getting the ABS light on the dash. But it cleared out as soon as the fluid level was taken down to normal. Hope that helps...

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well, I never did find out what was going on with the abs. Pulled the abs fuse and drove it with out abs until the rear diff went out last week. Pulled another rear axle from a 96 today. Well see if I get abs back