I can finally contribute something to this excellent write-up. He's my add-ons:
Prep:
1) Don't forget to buy a cotter pin for the ball joint castle nut (if you use my method).
2) I bought my axle from raxles.com. They are fantastic quality rebuilds of Subaru axles with new joints. ~$200 delivered.
Removal:
1) Take off the plastic fender to make life easier. It's only 3 clips holding it in place and will allow you better axle alignment for R2, plus better visibility.
2) The retainer on the axle makes it difficult to remove (duh). Try to align the axle perpendicular to the diff and pull, hard.
3) To get out the oil seal, take a punch or screw driver and gently tap one side into the diff. Once it rotates, you can pry it out. Be damn sure to account for the metal, spring-like, circular seal reinforcement that is on the back of the seal. Mine fell off in the diff.
4) I removed the ball joint castle nut and popped the ball joint using OTC 6297 (buy it on Amazon).
5) Don't waste your time trying to unstake the axle nut. Instead, just put the impact wrench on there and go to town.
Install:
1) Install the oil seal with a modified PVC fitting. Find something that is close to the oil seal, then ream out the fitting to get plenty of clearance from the delicate seal surface. Using a cup, modified fitting, etc. will guarantee it is is square to the diff and doesn't get over driven.
2) Install the diff side first. Be uber careful when installing the axle so that the retainer clip doesn't gouge the oil seal. Again, align the axle perpendicular to the diff and push, hard. It will pop into place.
I'm an descent mechanic and this job took me 4 hours, including time trying to find/modify a cup to drive the fitting. If I had to do it again, it would take 1.5 hours. I can post a pic of the PVC fitting if somebody wants to make one in advance.