I thought it would be a bad CV joint too. I was shocked and disappointed when I found out what it was. I suppose it could be a steering component too like a loose tie rod or failing ball joint.

I mean...at some point I think you just have to bite the bullet and take it in.

 

I just replaced the rear differential in my LR3 (locker) due to a similar noise. Noise was most prevalent during left turns but sometimes during right turns and sometimes when going straight. Always at low speed (under 20mph).
Friction clutches were worn or damaged.

 

did you rebuild or buy a used unit? If you don't mind me asking what was the cost?

 

I had a new diff installed at the LR dealership. $5400 parts/labor included a new differential servo motor. That also included a front differential fluid change. Ouch... I believe the Lucky8 website had the locking diff for $4800? so I figured the price, ridiculous as it sounds, was not out of the realm of reality.
I have been chasing this noise for a long time and in the process I have new forward upper control arms, new lower forward control arm bushings, front and rear swaybar bushings.....

 

Gunn, you answered my next question which was regarding the servo motor.When mine did this, I had the diff changed but I didn't know that the locking motor didn't "come with" the new diff. So, I was still rolling with my old motor on my new diff and after a few weeks I got this weird "soft fault." Thanks to the IIDTool I was able to sleuth out that it was a clutch pack thing and it sort of made me wary of the old motor so I wound up changing it out.

Hell while they were doing that I had them change the rear driveshaft too since they had to take down the shaft to remove the diff. Free labor I figure.

 

So you guys were right. It is the rear differential, I spoke to Todd aka (tlt) he is the man to talk to about differentials. He stated that he has never seen any problems with the clutch plates before. He stated that the problem is probably something with the diff motor as well as the crown and pinion. I am looking at all of my options to see what will work best for me but I may try to have it rebuilt. Thank you everyone for your help!