Hey Guys, thanks for all the input. Here's what I determined and ended up doing. SJX40250 was correct with his comment about the grooves being from the rubber seals, although there were some pitting spots as well. After reviewing the axles closer I found that the area of wear from where the wheel bearings were making contact with the axle were actually in pretty good shape. It's to the left of the grooves in the pic, it's the really shiny spot on the axle.
Anyway, I tore the whole rear end down and went through every piece, wheel bearings, wheel bearing seals, carrier bearings and races. What I found was that the driver side carrier bearing at one point had something work it's way into the bearing and had every single bearing pitted/chewed up on just that side. The previous owner installed new wheel bearings in an attempt to fix the noise, boy you should have seen the nice screw driver marks where he tried pulling out the seals!!! The passenger side carrier bearing looked like new with no wear what so ever.
I bought new wheel bearings, new wheel bearing seals and new carrier bearings. I took the carrier to a machine shop who pressed the new carrier bearings on for $45. I then reinstalled the carrier and re-shimmed it to the required backlash setting. I installed the new wheel bearings and seals and then the axles. Put in some gear lube and took her for a test drive. Everything worked great and no rear end noises what so ever!!!! I have logged around 200 miles on it today and all seems fine. Thanks again for the input.