After pulling the drive this is what i found. The consistency is thick and its a brownish color. It does not smell like gear lube though.... let me hear your thoughts. Am i good or is it upper seal time?

I think you have gear lube and someone is greasing the hell out of the gimbal bearing as well.

looks like the by product of greasing the gimbal bearing many times. Wipe it out with a rag and re-grease the bearing at the zerk fitting. Not to much or you'll have the same mess down the road

Would be much more pale if there was water in it.waconda is right. Clean it good, regrease and go. Check for wear and cracks when cleaned out.

It could also be the yoke seal. Have drive pressure checked while off. It's common for this to happen. What does the driveshaft look like? If its cover in a thin layer probably yoke seal.

Looks way over greased but make sure the bearing is ok too. If your u joints got rust on the it could be water inversion from bellows.

From the picture I do not see an inner bellows retainer ring so I assume the unit is an older than genII.
If so the greese comes from the bearing from over greesing but the low viscus fluid is probably unit oil.
Remove the cover retainer nut and pull out the drive gear and yoke assy. Do not lose the shims behind as they must go back. The end nut in the middle of the gear is removed and whole assembly slid off the yoke assy. Inspect the outer surface of the gear end yoke for groves cut by the seal. If there is not a bad looking grove the seal only can be changed. It is pressed into the third plate in the assembly removed from the yoke. It must be driven out with a screwdriver and replaced, then inserted in the assembly. Most seal sets sold, come with three single seals with some 'o' rings.
I must tell you that my seals are better. they are rubber coated s.s. and all three seals are double with one inward and one out with two springs and both will miss the old grove on the yoke if you choose not to change it. look at amarket.com/imus2.htm. If the yoke and bearings are bad there is a kit.
good luck Buddy