Problem 1. Ever since i bought my z28 about 2 1/2 months ago ive heard a knock coming from the rear when the car would down shift into 1st and sometimes when i tap the gas. Now sometimes when i have the wheel slightly turned (at a stop) and then take my foot off the brake i can the noise with ever turn of the drive shaft. My first thought was U joints but it kinda feel like the rear wheels have alot of friction like its dragging on something. I also just noticed the differential cover has been painted.
Problem 2. When i was leaving work yesterday i decided to punch it while pulling out onto the road and did a couple doughnuts. I immediately lost power steering. WHen i got home i noticed i was leaking steering fluid. This is the first time it has leaked and the bottle is still full. My power steering doesnt work when im at an idle (the steering actually locks up) but as soon as i give it any gas (even in park) is steers freely. Today the steering hasing been working off and on and it hasnt been leaking anymore. Ideas anyone?

 

sounds like either you got fluid on the belt or the pump is going out or has air in the system. as far as the rear welcome to the 10 bolt world it is probably on its last leg (from to many doughnuts) i am on my 4th rear and my 3rd tranny