OK, have had a chance to inspect the driveline bits. Rear flex disk is OK, diff mounts are ok, problem diagnosed as play in the diff by lifting the wheels off the ground and twisting the prop shaft to see where the slack is.

Based on advice from my mechanic and parts shop, parts which will need replacing are the outer seals, plastic shims and the centre pin for the gears. As soon as I can take the car off the road for a day or two, will be atatempting diff refurbishment. Any tips or suggestions welcome.

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1987 300e manual 250,000 km (sold)