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I would expect some heat to be generated by a rotating assembly, but if the area feels warmer than some of the other areas that hold bearings this may be a good indicator of a bearing going bad.
Since you stated that the diff did run low on fluid, the front pinion bearing would be the first one to fail (since it is lubercated by the ring gear tossing fluid towards the front pinion bearing)
The repair is simple (in general terms because you my just be able to replace the front pinion bearing and race) but the truth of the matter is to do the job properly, you will have to disassemble the entire guts of the differential.
If you decide to do this, keep the carrier shims in order and do not drop the service washers (spacers) because they are cast iron and will shatter.
The front pinion bearing will fall out when the pinion is knocked out, but the rear bearing is pressed on and it also has shims.
When reinstalling the pinion, you will have to install a new crush sleeve and then tighten the pinion nut until a rotating torque of about 20-25 in/lbs is achieved..if you over tighten the pinion nut, you will have to start over with a new sleeve
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