Yea, it sounds like you trashed the front diff. A quick check on it's condition:

Jack up front so both wheels are off the ground.
Transfer case in 2H.
Lock both hubs.
Spin one front wheel.

The other wheel should spin in the opposite direction. Plus the front shaft should turn. If neither occurs or you get a grinding sound chances are the diff is toast.

1998 Sportage - Gone.
2004 Honda Civic Coupe.
2007 Suzuki Grand Vitara - She got it.