I'm beginning to take a look at my 68 3:08 10 bolt Posi.

I'm thinking that I might just change the lube, sand, paint and put on new brakes.

It seems to be ok, when I turn the yoke, the shafts spin smoothly with very little to no play at all.

Is thier anything that I should look for by just outside inspection or anything I can do to see if the rear is ok without tearing it down?

You can check the posi by trying to turn one side with the other tire on the ground, use a torque wrench on a lug nut. Don't know how much torque it should take to turn it, but my new one could not be turned by normal humans.

You could also pull the axles and check the bearing surfaces. Chevy rears have no inner bearing race, the bearing runs directly on the axle, and they do wear. Bad wear = buy new axles.

If there is any "mess" inside the brakes on the backing plates, you probably have bad axle seals, which will require pulling the axles, then prying the seals out and replacing them. If you have to go that far, you should rent a puller and replace the bearings, too, cheap insurance.

To verify any crud in not leaking brake fluid, pry the dust seals off the wheel cylinder and make sure it's dry underneath. any ain't, replace the cylinders.

Get a hardware kit, and replace all the springs, pins, etc.

Thanks, I'm trying to avoid tearing it apart.

The rear is out of the car on Jack Stands. Is their anything I should look for without going crazy?

Should I remove the cover plate? If I do, what should I be looking for?

The torque required to "break" a posi unit from the lugnut is min 35 ft./lbs.
Before you pull the cover, visit the GM dealer and get a bottle of clutch additive, if you decide to go with mineral oil, or use Amsoil having the additive in it.

I myself, would use the dino oil & GM additive, its been there for a long time.

Pull the cover and note what comes out with the oil, any chips?
Get a can of BraKleen and with the yoke up in the air, say 30*-45*, spray BK into both holes next to the carrier bearings. These holes are the lube troughs for the carrier bearings. Don't turn the axles while doing the cleaning, keep rinsing until the BK is clear coming out.

Check the spring perch interface to the axle tube. Check for cracks. Any cracks, weld them up. If you're welding, add a plate from the lip of the perch to the tube, you are triangulating the perch front side and rear side.

Check the housing for straightness. Put a 2-3 ft straightedge across each axle tube and measure the very ends of the straightedge front-to-rear and top-to-bottom. Max difference I would think would be 1/4 inch. Maybe a real axle expert will tell.

Brakleen the fill plug area to keep dirt out of the pumpkin when filling.

Great, thanks!