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Sounds like something in the torque tube... Maybe on of the couplings died? At any rate, you will need to drop the diff and transmission to get to it. Good luck!
Well, get the rear end off the ground, first blocking the front wheels of course, fire it up and roll them gently. Get a friend to do this while you are under there listening.
I had an instant clutch failure about a year ago. It gave no warning signs, but when I dumped the clutch in second gear it just stuck in second and wouldn't come out. I turned the car off for a few minutes, and was able to get it to change gears, but it would never hold any power/load again. Replaced with a new clutch a week later, and problem solved.