The basic design of all FL1 diffs is basically the same - the later ones from about 2000 on have heavier bearings. They are a dyna diff and generally do not have problems.
I am sure that the price for a new diff in Australia is probably OK but given the basic longevity of the diffs I would go for a good second hand one - from about $900 from a reputable landrover wrecker. Another option is to try the UK Ashcroft Transmissions
However if the diff is not dead now I would be getting another opinion - what is causing the metal? Is it noisy? Other than the metal what are other symptoms - sounds a bit suss to me. How do they know it has metal - there is no drain plug and the oil in Freelander diffs is not a serviceable item - strictly speaking the diff is never replaced and on service the filler plug is removed and the oil just topped up. (I do replace mine though). Is the metal from when the diff was new and is just the minor residue from the running in process - I would remove the oil - flush the diff, refill and recheck for metal in 5000km - I bet there will be nothing.
Anyway I would get a second opinion.
Garry
REMLR 243
2007 Range Rover Sport TDV6
1977 FC 101
1976 Jaguar XJ12C
1973 Haflinger AP700
1971 Jaguar V12 E-Type Series 3 Roadster
1957 Series 1 88"
1957 Series 1 88" Station Wagon
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