I don't know what was done to the fluid, but my mechanic is a 4wd guy who builds engines and stuff so I'm sure he did it right. Plus it's been making those sounds long before I got the differential stuff done.

 

Not familiar with 97 chreokee's, have you checked the boots of the cvjoints?
or if you have ujoints, how r they?

It is strange that u hear a "grinding" when the front is in the air and now axle spin...
might even be the steering stabilizer...

Have an assistant do a slow crank of the wheel till u hear it then have them roll the wheel back and forth from the grind to slack then back...

The slight wiggle of the wheel turning slightly may help you pinpoint the noise...

So crank steering wheel till you hear the noise,
then let go of steering wheel,
then slowly crank back till the noise comes back...

Good Luck and Keep us Posted...

*****

 

it is likely your CV joints. the bearings or the rubber is likely worn. they usually need to be replaced every 100 - 150 000 kms
google it and you will get a comprehensive explanation.