Have found something of intrest about the holes in the pinion cup. 1st I always noticed the faint smell of gear oil in the cup area ( No large amount of oil found just a trace mixed with the grease I that I had on the teeth) anyway when I install the new cup I wondered about the hole weather they were for oiling of the cup. So while i had the pumpkin in hand I tilted it down and low and be hold the rearend oil flowed thru the holes. These holes have to stay clear so the oil can flow in and out of the cup. I will continue to use a light coating of waterproof grease on them and make sure they are kept clean also. Just my 2 cents hope this helps others.

Yep!
Well I just got back from having my new Avon mount and the tech showed me a tool that they use to remove the pinion cup. This tool slides inside the cup with the same teeth that the driveshaft has it is bolted to the 4 bolts that hold the rear and is hollow inside for the socket to stick thru. It looked preety slick although I wondered how it would work it the teeth in the pinion cup were shot. ...
The teeth on the cup generally survive on the very end/opening of the cup, as the shaft is deeper in (ahh, gotta love deep shafts). That's usually enough to grab the cup. That said, my tool "migrated" to someone that thought they needed it more than I do...so a pipe wrench or big vice grips often do the job for me.