You stated that the diff was drained of fluid and it was needing to be refilled. I am iclined to believe it is a leak in the front seals and the with the fluid evacuated the metal on metal prob destroyed something in the front axel... <img src="/forums/images/graemlins/kewl.gif" alt="" />

Then again you state the drive shaft is at an extreme angel...that to could have some play in this equation.

C.