Are you sure you are not really looking at the c-clip? The clip is not on the very end of the axle. By your drawing , it would ride in the indention that you have pointed out with the topmost red arrow.

You remove the pinion shaft so that the axle can slide in just a little to free the c-clip. When all together, the clip is forced up against the inside of the side gear, holding it in place and keeping the axle from moving outward.

Once you get it apart, you will seel that it is very simple.

 

well, its been awhile since I took a differential apart, so when I do I'll see. And if I find what I'm talking about I'll take pictures for sure. Thanks for all the help everyone, sorry for drawing all over your pic shoebox