Limited Slip Problem?

If you have a open diff and one axle is stripped, you're walking and all forward movement ceases to exist anymore.
Good point (but not if it's partly stripped and it catching sometimes and not other times). My point is that something is probably stripped out/damaged in the rear axle rather than the trannie, based on the symptoms of this starting originally in corners and sounding like it is comong from the rear. I'd be pulling the rear diff cover before the trannie pan.