Freelander 1 Full lock lurches

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The 'knocking' you describe as sounding like it is coming from the rear - on full lock - will be the IRD output crown wheel and pinion / front diff carrier shaft to rear drive intermediate shaft jumping teeth - the strain causes the already knackered pinion / diff carrier shaft teeth to jump causing a considerable 'knock' down the whole drive train via the drive shafts to the rear. The lurching you describe is also the result of the same issue.
Basically - from all accountsa - the IRD is knackered. The crown wheel support bearings or FRONT diff output bearing and teeth will be knackered.
You are looking at a re-con IRD and a replacement / recon VCU whatever results you get on any test of the VCU. - you simply cannot afford to NOT replace the vcu once the IRD is confirmed as knackered.
It was removed for the very reason you are seeing. (unfortunately)
I wouldn't waste time with any tests of the vcu with the symptoms you are having. Simply drop the oil in the IRD and remove the pinion input housing and take a look.
Anyone selling a freelander with props off for 'economy reasons' is basically conning you.
It could also be the case that the IRD front diff shaft (internal to the IRD) is jumping teeth. Usually this is caused by the collapse of the RH drive shaft to IRD input bearing. This can cause the case to shatter meaning that the IRD is not even fit for exchange.
All in all - not good news from all you have described.
Again, for now - ignore the VCU - drain the ird oil, remove the IRD pinion housing and inspect - and also check the RH drive shaft to IRD connection for ANY free play.
 
Cheers for that Jon.
I'm going to try and drop the oil and check the pinion and take it from there.

As I say with the prop fitted it drives fine no knocking etc until you put it on full lock, 3/4 lock it's fine.
With the prop off there are no symptoms at all.

With the IRD shot it then enters the cost / worth balance.
 
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