By taking all of your suggestion and adding a little grease to the bolts, I finally got the differential installed. It fought me at every turn, but we finally got it. I did take it out, chase all the holes with a drill bit, and then had to use some "creative persuasion" to get all the bolts in. I ended up using four washers to fill the excess space, one on each bolt. I guess that given the alternatives, I prefer a little extra space to fill rather than fighting it because it is just too tight.

All the suspension bolts are in but none are torqued to specs. I have to get a stronger torque wrench to do them. Any suggestions of a good quality torque wrench? I am looking into a craftsman right now. I like their lifetime warranty. I am also finding an ever growing list of sockets and box wrenches that I need to add to my already overflowing collection.