Saga continues...
Apparently the bearings on the front were the problem but something had broken inside the case that it has torn up more than can be repaired with new bearings. A used front diff will be $1800 to get and install, etc. A remanufactured one with a two year warranty will be $1700 so I went with that.

He said it would be a few days before he can get the reman one in, so he is putting it back together, without the front diff I assume. and said I could drive it without any issue until the new one comes in and he can put it on. Is that accurate? He said it would just be 2WD but should have no other issues. We have a quick day trip that we are doing Saturday and I don't want to be two hours from home and get stranded.

He is also putting a new motor mount on today before we pick it up. I like this guy and he has a great reputation in town so I feel like I can trust him, I just want to see what you guys think.

Thanks again.