I usually set mine so that when you hold the diff in your hand, and lock the outdrives with allen drivers, you should just be able to make the diff slip. It does feel tight but it should be just about right if you can move it.
If you hold one wheel with one hand the other will turn but it may feel a bit tight or 'feel' gritty.
If its attracting dirt onto the driveshafts etc. Clean the grease off them. That is what will be attracting the dirt and grit.
I run mine dry and have had no problem at all.
I'd also fully strip the thrustrace down (the bit with the small balls) and get all the grease off. Then re-build it and put a little les grease on. I usually put some of the grease on a small flat screw driver and just put enough grease on the plate to hold the ball bearings in place whilst I build the rest up.
Mine's been pretty much bulletproof since I built it, and I've done 4 race meetings with it not being rebuilt yet.
hope this helps.
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