Something else I just discovered, while rotating the passenger side wheel back and forth I get some play before the drive will turn and hear gears meshing? Drivers side is not so pronounced. Is this normal? Trans is in neutral
If you are talking about the diff case, "play before the drive will turn and gears meshing" - then this sounds like what my diff felt like when I thoroughly checked my drivetrain for a clunking grinding sound this summer and nothing was wrong with the diff (my prob turned out to be the pass side rear wheel bearing, just FYI).
As mentioned by someone above - If you grab the rear wheel and you can move it up/down or front/back, then you might have a bearing problem there, not related to your tailshaft noise.
Best,
- Art