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I doubt that you could boil differential fluid. Used hypoid oil tends to start combustion a lot sooner than the point of vaporization.
When I acquired my '87 245 at 210,000, the differential fluid was effectively burned beyond recognition. For all I know, the fluid may have been original from the factory. It came out very slow and the smell was horrific, like someone had a bonfire of plastic in there. After allowing about a half hour to drain, I refilled it with Valvoline Durablend 85w90 differential fluid (which is 1/3 synthetic). I drove it 1,000 miles and changed the fluid again. By using a synthetic or partially synthetic fluid, you greatly extend the life of both the fluid and the seals. It's also a bit more robust as far as heat is concerned, but I still plan on changing it every 30,000 or 50,000 miles or so (depends on fluid condition when I check it). There's some burned sediment on the gears that's slowly loosening up thanks to the synthetic addatives. (yes, I pulled the differential cover and inspected it. Not pretty, but it's getting better.)
God bless,
Fitz Fitzgerald.
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'87 Blue 245, NA 214K
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