There should be an o-ring seal at the bottom of the cable assy, when you get the new one.
Also, the cable attaches to a white plastic snap-in adapter behind the IC; be careful detaching this adapter (and the cable from it), when removing the cable, which will snake through the firewall; if in doubt as to whether you can avoid breaking the tabs on the adapter, have a new one of those at the ready as well ... or separate the adapter/cable at the IC end before getting the new one so you know the adapter is good to go.
As to the gearing at the diff, the spd'o driven gear (an upright shaft with affixed gear at lower end - not visible) is straight down the top of the diff channel; it is driven by the diff down inside; this hidden (lower) driven gear is held onto the top spd'o gear sleeve (which your new cable will screw onto) by way of a small drift/roll pin. The basic process is: the trans gears turn the diff which turns the spd'o driven gear (which connects to the upper sleeve via the roll pin) and which turns the cable which turns your IC gear. You probably won't need to dive into these (sleeve, roll pin, driven gear, diff gear) in the diff; but, you have the info, if needed. SBR711 can confirm on the '98, but I think it would be a diff job to replace the driven gear (down the channel) if it is proven bad. The driven gear's gear is made of hard plastic.
What size engine (1.8L or 2.0L) and what trans do you have - and how many gears?
Good luck. Keep us posted.