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Just bought my 79 and I can hear loud banging and thuds coming from the rear wheel area. It only happens when going very slow, stopped with foot on the brake and the car wants to move forward and when turning at very slow speed. Any ideas. A mechanic said it's normal. Sure doesn't sound normal.
When was the last time the rear end was serviced? I would start there. Is the differential "wet" - I would make sure you have the right fluid in there, including the proper GM posi fluid - two bottles plus the standard gear oil. Check your seals - make sure they are not leaking. Sometimes the clutches back there get all dry and bound up due to lack of service. Sounds like your rear end needs a little attention... (Nothing personal ) Whatever the case, the clunking and thuds you are hearing are definitely not normal. Is your mechanic named Bubba? I wouldn't let this guy near my car.