It's most likely one of two things. Check the bulkhead fitting...is should be on the top of the diff housing where the air line attaches. See if it's leaking there. There is not a lot of room in there, so it may be hard to see. Also brush on some soapy water on it with the compresser on and see if it bubbles up. If that's the problem you can get a new fitting from ARB (it's a standard part for all ARB) and replace it or it maybe just loose and you can try tightening the compression nut. Be carefull, this should not be really tight anyway because it seals with a small O ring.
The other problem may be a bad/blown Seal housing O-ring (ARB part #160208 on the RD 107 locker) That will require removing the differential cover so you can remove the seal housing and replace the O-ring. If I were going to take it apart, I would get the O-ring and a new seal housing (part #080802) just in case the problem is the copper tubing line that could have shifted and sprung a leak.
If a shop installed it, take it back to them. Most people have said that ARB is great with their warranty issues.
Good Luck.