Right, I moved the car the other day to see if the problem was still as bad and all I was getting from the back right wheel now was a squeak when going right. I took it round the block and it didn't get any worse so it looks like the diff is ok.

Tonight I jacked it up to check the wheel bearings but both sides have no movement. HOWEVER, when lowering the car back down, shortly after the wheel touched the ground it would jump up with a loud clunk. I jacked it up again to see what it was, and when the pressure was off it, it clunked again. Then when lowering the jack it did the same. Each clunk also had definate movement on the wheel vertically.

What could this be?? is it the bearing at all? The noise when it first went was VERY loud, but now it is a squeak when turning the car right (doesn't squeak when turning left or straight).