Well looks like the vibration and clunking was the rear u-joint. Removed the drive shaft and sure it enough it was long gone. I also drove around without the rear shaft and no clunking and no vibration.

I still get the squalling/scuffing noise when turning right or any time the vehicle weight is being shifted to the driver's side. I will pull the driver's drum and check for slack in the bearing. Maybe I need to add or remove a shim from where the backing plate bolts to the axle tube???

1989 Montero 4dr V6 3.0l