Big red with big problems

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Hey everybody, so I bought myself an '86 Big Red 250es this spring as a fun and cheap toy/fixer upper. When I bought it, it wasn't running, and the electric start wasn't working either. So I after plenty of tinkering I got both issues figured out and she runs/starts like a top every time. HOWEVER, on the second ride I've taken this thing on I've broken something, and I don't know what.

Whenever I put in any forward gear (SL-4) it grinds and chatters and wont go anywhere, reverse works just fine though. On my long reverse ride home (also towing my buddy who seized his crank on his '84 atc 200 pulling me back to the trucks) I found that any hill that was steep enough to roll backwards it would do the same aggressive noisy grinding chatter that it would do when I tried to go forward.

So I figured I should ask if anybody has any ideas what my issue could be before I start tearing this thing down. Any and all help is appreciated!
 

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Turns out it was the diff, took it apart and found that it ate a bearing and devoured itself.
 
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