I did read the TSB for failing diff sensors somewhere on one of the Jeep forums but I cannot find it again
However I do remember it going something like this:
2005 KJs have a chance of the rear diff speed sensor failing.
This is due to the
incorrect lubricant inside the rear differential
Owners are to take their vehicles to a Jeep dealer where the rear diff lubricant will be replaced with the correct lubricant and a new speed sensor will be fitted.
This makes one wonder what lubricant they put in the diffs of some 2005 KJs to eat away at the sensor.
I will try find this darn TSB but I would suggest that people having this problem should drain their rear diffs....if they have not already done so...and re-fill with the correct lubricant and replace the sensor.
Edit: OK found it TSB-08-048-05Link is here:
http://www.jeepkj.com/forum/f212/tsb-08-048-05-differential-mounted-rear-wheel-speed-sensor-27665/