2008 XC70 drivetrain binding up?

[leylandp38]

I have a 2008 XC70 D5 manual box, early P3 based XC70 with the Haldex 3. it's on 150k miles and is in very good condition. I've always maintained it and to be honest it's one of the best cars I've owned.

Recently I noticed a faint vibration in the drivetrain, particularly on turns. I had it checked at a local garage who diagnosed a possible transfer case issue and topped up the oil.

However shortly afterwards the vibration got worse. I'm not convinced the diagnosis is correct. The symptoms don't align with what I'm reading on this forum and others. Now it is more pronounced, what I notice is that it seems to be binding up between the front and rear axles, which suggests to me perhaps a Haldex issue.

I have since then avoided tight turns, the issue did not yet seem significant. Last night however I was on a 30 minute drive and when stopped at a junction, I was sure I could smell burning rubber. When I got home and parked, I got out and immediately smelled burning rubber from under the car. It was chucking it down and it was around 1.00am so I didn't bother looking underneath.

Can anyone offer some advice?

thanks

Al