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I have a leak of greyish oil(I think) running down my front diff, it's coming from up by where the drivers side shaft meets the diff but I can't see in there. If thinking it's the shaft seal any ideas??

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89' Ranger, 4" Susp., 32's, Warn 6000lb etc., etc...
 

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Greyish fluid means its probably full of water. Start by draining it, and refilling with clean gear lube. Hopefully you haven't got any damage yet...
As for your question, yes, it is probably a inner seal.

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I'm on my way to impact, Taste the high speed dirt!
 
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