I converted to a SMF 4 years ago... first time I have heard of overfilling the ZF.
My DMF was louder, but that may have been because it was on its way out.
Normally on any gearbox or rearend, the oil level is setup such that the gears just "dip" into the fluid and carry it around to the rest of the moving parts. You will find most fill level plugs midway or somewhat less than midway because of this design.
In trying to get rid of the gears "slapping" inside the zf with the SMF, people are trying to submerge the gears in the fluid to give more of a cushion to quiet it down.
I believe the factory fill is 4 quarts. I have been putting 6 quarts in mine. I have heard of people putting 8 quarts(2 gal) in the zf, but I am just too afraid to try this. I believe it would put too much fluid pressure on the rear seal, and other sealing points in the tranny, inviting leaks.
I hate to say it, but what I have found out about the info on these boards, is some of it will not work, so be ready for a little bit of wasted time, but hopefully no catastrophic failures from following someone else's advice. I find really helpful and useful ideas about 90% of the time, with the other 10% not working very well.