this is what happens when you add the #35 washer when its not called, source of the whine:

Update:
installed a new Center diff..........Without the thrust bearing. mine didnt have the thrust bearing to begin with.
Again did some rotations in a parking lot, and no binding.....
but now i get a whine....?! any idea?
Update....
First test drive, it was fine, nothing out of the ordinary...now i got some chirping in the wheels when im doing tight corners, like entering a parking stall.....
Went to the suby junkyard and they suggested some GM LSD additive.....
Is the center diff the issue? straight line the car is fine, normal turns is fine, its when i try to do a u-turn or parking stall entering is when it starts to buck and chirp.
HELP!!!
So i picked up this car about a week ago, and i discover new things everyday! while looking at my fuel tank, i removed the exhaust, and and looked up and saw this:

Car runs and pulls great. if i bought the shaft, would there be any issues?
there isnt any wierd sounds or grinding. ive been driving since last week. and i believe the previous owner (a grandma) drove it for 5 years.
guess its time to hit the local junk yard.