Is it possible to post a shot of your ABS sensor mounting locations on your Dynatrac axles? Did you run stock OEM H3 sensors? I am getting ready to put axles under my H3 alpha. I am going to run a AAM rear axle from a 2003 2500 GMC in the rear and Dana 60 front axle from an 86 Chevy 1 ton for the front. I have been looking at the tone ring install from Dlux Fab seems to be what the guys are running on newer body style SAS on CHEVY and GMC trucks. Also you mentioned you figured out how to get the rear locker to not throw codes anymore. Can i get more info on that also? How are those 5.38 gears with 40" tires? Thanks
Rear ABS rings...
The factory H3 rear ABS rings are inside the 10-bolt axle tubes. The rings come from GM with a rubber-like liner bonded to the I.D. and some nasty black glue. They are designed to get tight at the correct position as you slide them down the tapered axle shaft...approx. 6" from the flange. Depending on your new axle shaft diameter, you might have to put the rings in a lathe and turn some of the rubber liner off the I.D. to fit the larger diameter. Also if they are not tapered, you might have to add a set-screw or come up with a way to keep them from sliding back & forth on the shafts. You got about a 1-1/2" width to work with, and as long as the sensor tip is anywhere along that length you should be good. You'll have to drill the axle tubes and install the sensors...somewhat like the 10-bolt comes with. The only change to this I would recommend is locating the hole on top of the tube, instead of the rear (so it doesn't leak as easy).
Front ABS rings...
The factory H3 front ABS rings are sealed inside the unit-bearings. Apparently Recon found a way to re-use them but, I could not. Instead I used some from another GM application and they work fine. They are external rings and must be mounted to your hubs. I've done a bunch of Dana 44 hubs and I'm sure the Dana 60 is not much different. The front sensors must be mounted to your caliper brackets so the tip can properly read the teeth.
Instead of re-inventing the whole enchalada...focus on relocating all the stock stuff. I've been driving mine for over a year now, and the computer has no idea I'm running a 30-year old solid axle. The electronic stuff works perfectly, and I have zero code issues. It works so well that I actually made a bunch of them. I currently have a pile of H3 SAS Dana 44 hubs ready to go. They come with caliper brackets that adapt the 4-piston Hummer brakes, rotors, and ABS system to the 70's era Dana 44 axle. They also have the factory bolt-pattern, and metric lug-studs so you can use all of your existing wheels, lugs, etc. and just move them over to the Dana axle. I sell these hub swap kits for $399. Obviously, these won't work on the D60 but, I'm sure you could do something similar...
I got nuthin on the rear locker code...mine came with a locker and I've never had an issue with it. I added a front E-locker, and its wired direct (not interlocked with the rear like 2009-up models). Like the rear locker...I only use it in low-range when Stabilitrac is disabled. I cannot say for sure but, I think any sort of limited slip or full-time traction device will play hell with the Stabilitrac. Perhaps this is why GM only allows lockers to engage when Stabilitrac is defeated (in low range).