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Ford Explorer Community - Maintenance - Modifications - Performance Upgrades - Problem Solving - Off-Road - Street
Explorer Forum Covers the Explorer ST, Explorer Sport, Explorer Sport Trac, Lincoln Aviator, Mercury Mountaineer, Mazda Navajo, Ford Ranger, Mazda Pickups, and the Ford Aerostar
Whenever I hear any oil has a milky color I believe it is a result of water getting into the oil. You should drain and replace the differential fluid because the water will wreak havok on the internal components.
You should definatly change the fluid, you have water contamination. You should also check the transfer case, transmission and rear diff for water contamination. Then extend the breather line on the fron diff.