It was the brass bushing pressed into the bellhousing, I checked it out at a shop. Unfotunately I can't figure out how to add pics from my phone, though I could email them to someone if they are willing to post them.

From where it sets now, I am going to have it completely rebuilt with a LSD.

Although if someone has something in good shape in NE Florida, I'm open to offers, though it won't be for a few weeks.