This is bad.

The sure grip can be wore SLAP out and this will not effect the car moving. It sounds to me like something is affecting the axle bearings making them too tight. Did you try to rotate the third member from the drive shaft yoke before you installed the axles? If it turned freely, then the problem is probably not the third member.
Yea, the third member turned smooth as silk before axle install. Is it possible the green bearings are installed incorrectly causing pressure resulting in binding?