bearings it was!
pulled the axle to find a rusty old dried up bearing that turned like it was full of gravel.
replaced all the appropriate goodies and viola, shes rolls like she's supposed to again. thanks for the pointers, gents.
What is strange it that you found them rusted. Was the gear oil level low or was the car sitting for a long time? Either way, you got it fixed and you're back to driving.