Noise in rear of car plus diff fluid everywhere?!

[Mike1261]

I've been hearing a noise in the back of the E53 the past week or so and seems to be getting worse.

It happens at low speeds around town, bumps seem to set it off. Highway no noise, smooth roads no noise.

It sounds like a low chirp as the best I can describe it. I thought it might be the lower control arm moving around in the slot because the nub on the frame that secures the eccentric washer in place is damaged and not able to hold a toe alignment. Figured on bumps it was moving around. But it doesn't seem to be.

I crawled under the back this evening and was shocked to see fluid sprayed all over the passenger side under the car and over the tow hitch.

Attached is a pic of the area where the axles go into the differential and there is a gap that isn't present on the driver side of the diff. I'm guessing that's where fluid is coming from as all the wetness seems to originate in that area.

Does that make sense? I don't know the mechanics of the rear axles/diff and how it's all pieced together. What do I need to do to fix it?

I recently replaced the passenger side lower control arm bushings. The old ones were totally F'd. I had to cut them out with a sawzall because the bolts were seized inside the bushings. I'm wondering if correcting the rear control arm geometry put stress onto the axles in a way that's causing this issue? Seems awful coincidental to be on the same side immediately after the bushing replacement.

Thoughts?? Thank you!