Without taking off the differential cover, is there a definite way of telling whether my diff (DANA 35C) has LS or not?
I jacked up the rear end and turned one of the wheels and the opposite one turned the other way.
Also it was quite hard to turn and would not spin at all. The hand brake (e brake) is not binding so should it be this way or is there an issue with it. At a guess it might need approx 1/2hp to turn it!
I am doing this as I am getting a binding noise coming from the rear when pulling away, its fine once moving. That might be the UJ's although they are really tight and firm and no play in them when in Neutral but they are very dry. On LR Defenders the UJs make a clicking noise all the time when they go.
2000 XJ 4.0L auto Classic

 

best way is to pull the diff cover. it's always good to do at least once a year just to have a clean full diff and to inspect teeth on the ring gear.
if it has spider gears, it's open, if it has clutch packs, it's LSD.

or the lazy way is to jack up the rear on jack stands, put in neutral and get under and turn the drive shaft by hand. if both wheels turn the same way, it should have LSD (or a locker).
yeah, some say you can turn the wheel, and if both wheels turn the same way then you have LSD, but my tj has LSD and if it do this, the other wheel turns opposite. i know i have a properly working LSD.

as for your dragging, remove the drums and inspect the brake springs/components.

twist the drive shaft with one hand on each side of the u-joint. twist opposite each other and feel for any play/slop.
then at the end of the drive shaft, at the pinion, push up and down to feel for any play/slop in the pinion bearing. is the pinion seal leaking?