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After a great deal of hassle I finally removed the wheel flange and gear from the rear drive. Unfortunately during the process I chipped the gear. After cleaning up the wheel flange it appears the reason it was so hard to remove was some damage on the splines of the shaft. The service manual says to make sure it is not damaged, but what constitutes unacceptable damage? I don't want to drop money on something that will last another 20 years, but I don't want to reinstall something that's going to blow up in six months, either. Please let me know what you think.

I'd replace. Scott at EI may have a good used one.

The flange is definitely for the bin; it is difficult to see the corresponding area in the gear, but if it shows the same grade of damage, it's gotta go., too.
From what I can tell the gear has not been glued to the flange. Do not repeat that mistake.
The army manual recommends the use of Loctite 641 to ensure the gear is firmly connected to the flange.
At that point ensure the M6 x 20 screws are quality 10.9 and the washer on top of the flange is 9,5 mm thick and marked with a groove. The screws need to be secured with Loctite 242

Thanks for the info. There doesn't appear to be any damage on the interior teeth of the gear, just the chip on the lip.

John,
The first time I pulled a gear out that had previous damage to the lip, I assumed the gear needed replacement. I was told differently by Dennis Williams at Linden, IIRC. The small missing lip pieces don't seem to effect the operation. The pieces were not found in the case, so I assumed they were broken during repairs.
I reinstalled the damaged gear, and never heard anything more about it. I've since seen one other gear that had been previously broken and reused.
From my experience, I wouldn't worry about the lip.
But I suspect that Albert is right about the worn splines.

The splines must be a little softer than the gear, since the internal gear teeth are fine. I did a good clean-up and got out the bright inspection light and took a close look at each land and grove, and I couldn't find one bad spot.

I can't find Loctite 641, or any Loctite products in my area, only Permatex. Is there a Permatex equivalent to Loctite 641?

Amazon has it. If you are Amazon Prime next day possibly.

Thanks.