I was working on a 4x4 so i had enough room to work without lifting the truck.
This sensor going bad will make the parking brake and ABS light kick on.
Tools:
flashlight
Flat head screwdriver
3/8th ratchet
1/2in deep socket
9/16ths deep socket
wire brush
Lube
and possibly a pick
Lets not forget the new sensor!
First, get comfy under the truck... on top of the differential, you'll see this
attached to the sensor (towards the rear of the truck) are the brake and parking brake lines. the first nut (1/2in) will allow you to pull those back and give you some room. (not pictured because i had both nuts back out and left the assembly together)
then disconnect the harness
once that is complete, bend the old metal sheath to allow it to come off and expose the sensor itself.
with all that road grime exposed, you don't want to risk contamination of the diff fluid. take your wire brush and clean up the area.
then spin and gently pull the sensor straight out, mine came out in two pieces. (where the pick came in handy) the flat head can help you get leverage, but it can help you crack the sensor as well.
then lube the new sensor and install back into the differential. hook up the harness and make sure the ending result is sensor, sheath, 9/16ths, brake line clip, 1/2in
and you're done!