It's not brakes, I forgot I did put new rotors and pads on it. Also, the grinding only happens on part of the rotation of the axle, not the full time. The thing that really has me baffled is the horrible vibration, which is most definitely the right side. Can a differential cause this vibration?

I wouldn't mind hitting the junkyard for a transmission, if that's for sure what it was. That's what I'm trying to determine.