Just take a 180 grit 2" air 90 degree 1/4 twist sand pad and graze over the side gear to eliminate that rough side and the cone there is not much you can do with that. Change the oil more often than once in 30 years... It really has nothing to do with the way the posi will perform.
Check this cone out in the case... see if you can spray some paint ont he cone area and install it back on the side it was ...see if the paint rubs off ...IF it does your cones is just on the edge of hitting and will need to be machined if you want it to work correctly - And if that is that close the other side might as well get done too as i am sure it is not too far behind.
Remember this thing is 30-40 years old.
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