U joints...

 

Yeah gotta say 100% gotta be u-joints. U described to a T, especially with the putting into gear clunk, a bad u-joint problem. Have seen that many times. Easy and cheap to fix with the right size sockets and a table vice. U-joint retainer strap bolts are 8mm by the way.

 

Front tires will chirp when turning sharp on pavement while going slow, if you had a welded dif and it broke you would definitely know it.

 

Thanks guys, yes the driveshaft is loose. No I just need to go on Youtube and learn how to change u-joints

 

If you have a big bench vice and an assortment of sockets it is easy. Just get good ones with a grease fitting so you can hit 'em with a grease gun when you're changing the oil. Also pay attention to the orientation of the spider when you install so you can grease them after you press them in... you'll be cussing if you get them in and then find out that you can't get your grease gun on the zerk. Ask me how i know this.