Others will chime in, but I'll start this of.
Certainly sounds like the pinion seal is leaking, its very common on the 8.8 axle. I replaced the seal in my 99 a couple of years ago so...
If you have a good selection of tools and are capable of an afternoon (or less) of dirty work, then its a do-able project. You will need some special tools like an in# torque wrench (beam or expense dial type), socket for driveshaft bolts (I think its 11mm, 12point socket) and fab a holding tool for the pinion flange.
Lift all 4 wheels off ground and support on jack stands.Remove rear cover and drain fluid. Mark pinion end flange to driveshaft location. Remove driveshaft rear bolts and remove driveshaft. Plug end of trans with rag.Remove rear tires, remove all rear brake components. Rotate pinion nut several revolutions with in# torque wrench and note at what setting the rear axles turn.(should be somewhere around 25 in#.) Mark location of pinion nut to flange with a straight edge.
Remove pinion gear nut (this is where you need the tool to hold the flange while you remove the nut). The flange needs to be pulled off with a gear puller. Now you can remove the seal with a seal removing tool.
Install is reverse of the removal. Lube the inside of the seal with gear oil. Put some silicone sealer on the outside of the seal. Drive in place with a seal installer tool or plastic hammer or block of wood. Align flange on spline and tap into place. With holding tool in place install new pinion nut. Final torque setting will be the same that you noted to turn the axles before removal..
Continue with the remainder of the reinstall.
All of the above is from memory, if I missed something I will edit later. Others please correct me or add-in.
Best of luck. You may decide to take it to a shop if the above sounds intimidating. Do a search beforehand, many have taken on this same project in the past.