w124 rear end noise when coasting
 

The car makes a scraping/grinding/metal-on-metal noise in one part of the rotation, but it only seems to make the noise when I'm coasting. Its loud enough so that I would be able to hear it while accelerating, yet I don't.

It sounds like its coming from the right rear (passenger side).

I took the wheel off and remove the caliper/rotor and removed the parking brake mechanism because I thought that was the culprit - however, it still makes the noise.

In the list of possible culiprits we have the wheel bearing, differential, flex disc, and driveshaft support/bearing.

Any idea on how to narrow it down without buying $$ worth of parts??

Skiier3 9:
Did you find out what the problem was? My 300CE is having a similar issue (left rear) and I have not been able to find a cause.