I have the same problem (almost). My front air locker by itself werks great. When I hit the rear, the compressor stays on. I spoke with Big Mike about this, and he says to first check for a bad air line from the compressor to the diff. If your smelling gear lube, then the air leak is likely inside the rear diff, so your breather is venting the air. I think you (and I) need to pull the rear axles and rear third to repair the air leak. It could be the copper air line, or a bad seal?