[Cobra20646]

Okiesnake,
Limited Slip, Posi-trac, Power Lock, or what have you, all act alike when both wheels are off the ground like you mentioned. Both wheels will turn the in the same direction..... providing the tranny is in neutral. An "open" rear will turn in opposite directions.
I have the jag rear in my car too and notice a very high pitched squeel at low speeds. Mine doesn't care if I'm going straight or turning. Can't seem to duplicate the problem with the car jacked up (on stands) with the engine turning the wheels. And it might go hours without a peep......
Everything looks good and tight too. Good luck with yours.
- Jim -

PS I put in the stuff Bob Putnam mentioned too. Don't think my noise is from that area of the rear though. Seems to be more outwards from center.