I can tell my differential is going out, I get alot of clunking from the rear at slow speeds, and when I go around a sharp corner slow. Is this damaging anything inside the differential? Also, is this affecting my traction? For example I was easily able to throw the cars back end out on a hard 1-2 shift, but now, the tires just screech a little. To fix the diff, alls I need to do is buy a new LSD unit, like a Auburn or something, correct?

 

It may just need some GM limited slip additive. They will make a lot of weird noises without it.

 

Do it right one time and for the last time....spend the extra money and get a 9 inch or a 12 bolt....you won't have to worry about this ever happening again!