i was going to ask about the clunk too. when im in low and shifting between drive and reverse there is a cluck and jerk. i twisted the drive shaft by hand and there is about a quarter inch of play, so i assume the clunk is the drive shaft twisting free before catching and that low range amplifies the jerk by applying more force( torque ). i was thinking worn u joints, but could you explain axle wrap as this may be the problem.