Limited Slip Problem?

7.25 SG are clutched so you can rebuild them. Sounds like a trans issue to me. driveshaft applies torque directly to the ring gear which is bolted to the carrier. Even if the clutches were shot, you would still get 1:1 from carrier to one axle assuming they are both on the ground. I would check fluid first.

I would agree, if a sure grip goes out you still have a peg leg.