Talk about the E-Type Series 1
Very likely indeed to be the diff . You need to get the rear cover off and see the marks on the crown wheel which show the tooth engagement. If you look in the knowledge base in the final drive section of the workshop manual, it has useful diagrams showing the significance of the tooth marks ( you probably will need engineer's blue to do it ) . It may be that the pinion is out of adjustment . You have checked the oil level, I hope , and that the correct EP oil is being used ?
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