I saw this post and was hoping it was about a) an E39 and b) it was about the drain plug as my E39 has got a slight weep from the drain plug. So sorry for the intrusion into this rather unknown area of the forum for me!
Sounds about the right price give the labour and difficulty in accessing if the diff is still on the car. The diff pinion oil seal will be a 'big' job as they will need to remove the prop shaft, undo and remove the pinion shaft to prop shaft drive plate flange nut. This nut will be very tight as it puts a pre-load onto the pinion shaft bearings, by most probably collapsing a small tubular spacer. Once the nut is off, the prop shaft drive plate will need pulled off, then you can get access to the oil seal which will be able to be removed and replaced in about 5 minutes. "Classic Haynes line now" Refitting is reversal of removal which includes horsing up the torque on the pinion shaft to prop shaft drive plate flange nut.
I will now scuttle back to the 5 series technical forum and wait patiently until someone else has the same leaking diff problem as me!
Andrew