Is'nt that measured with everything removed from the axle housing so that you are only rotating the pinion gear?
You'll need:
1) a torque wrench that reads in inch-pounds
Yes they use a crush sleeve, if you don't change anything you won't need to replace it. Tighten the pinion nut until there is 15-25 inch-pounds to rotate the pinion gear. (closer to 15 with old bearings, 25 with new)
In a HP application you can use shims to eliminate the crush sleeve.