You sirs all deserve a medal! You all nailed it. That's exactly what happened, I don't think I ever needed a clutch, some mechanic my buddy recommended!
So I jacked the front of the car up, took the front tires off and put it in 2wd and first gear and the passenger side axle is spinning freely, but not actually spinning the wheel. I check the axle nut and it was loose, like I could remove it with my bare hands loose. The driver side axle was not spinning at all however I think that may be due to no limited slip differential? therefore the pass. side wheel getting more power/power first? Stripped hub is what it looks like, that's what that grinding was before replacing the clutch, just as George1943 said.
Thank you all so much for your help! Now I just have to find a hub assembly and replace the axle, just glad I don't have to redo the clutch or something...