Looks as if the centralising peg has partially come out of the nose of the diff. Think the pinion flange securing bolt may have come loose.
Getting that centralising peg to move is normally a pig of a job!
Undo everything, use a bit of threaded bar down the threaded hole in the centralising peg, big wide thick washers, something like a cut down big sized box spanner as a spacer, then use nuts to make a lock nut to hold the bar while another nut goes down the bar to the washers and draw the centering peg out the rest of the way.
Then you will have to hope that there is no damage to the pinion and or the crown wheel. The seal may well need changing as well.
Seems like the seized bearing turned into the housing untill it came out, a new diff is needed cos no bearing will stay well in that worn housing
I don't know what SF means by this. Pinion bearing? Maybe, as a worst case scenario.
But crossed fingers it'll be what I said. Happened to me on a D1 and once tightened up it was fine. But in my case the centralising peg didn't move, the pinion flange just developed some sideways play and the diff made a noise.
I do appreciate there may well be more of a difference between a D1 and a D2 diff.
Having had a good look at RAVE I don't think, even if one of the bearings has sustained damage, all is lost. I also don't think the pinion can possibly move outwards like that. If you want to strip it down to remove the pinion, it eventually comes off the pinion housing in an inwards direction, towards the crown wheel. and there are two roller bearing races and two spacers between the pinion and the front of the pinion housing.
so i really think that the shiny bit of metal that can be seen is the splined part of the pinion flange.
What was the oil like when you drained it? If you have got that far.
