Alright everyone, a month or so ago my outer bearing decided to rupture. Upon attempting to disect the area, I noticed the spindle and a few other parts were in need of replacement. While attempting to remove the rear hub nut, I noticed it was practically welded to the part behind it.
In all honesty, I'm not sure what order the parts are behind the hub nuts.
And I'm not even sure where to find that part.

97 4.0 ext cab
Dana 35 front

 

Dana 35 exploded view here: http://www.therangerstation.com/tech...na_Ford_35.pdf

This is a manual hub swap article: Automatic To Manual Hub Conversion

It shows the "wedge" that needs to be pulled out to release the lock nut, from the debris in the "wedge" slot in your image it looks like you may have forgot to pull that out.

 

Thank you so much. My poor truck has been down for over a month while I was trying to find a replacement spindle that fit. Maybe now if I can find the wedge and other part, it'll be good to ho