Noisy fourtrak after wobble

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I've just bought an Indy TDX Riviera. This morning I experienced what I can only describe as a wobble, a bit like climbing over a small log when offroad. Sadly, I was on a dual carriageway! There was a bang, a very strong smell of burning rubber and a noise like I was dragging something wavy underneath. I thought, initially, that I'd gone over and then picked up a big lump of delaminated truck tyre, but there wasn't anything in evidence. Back to the garage where they diagnosed a failed power steering pump, which is probable as the steering is very heavy and "notchy". OK, but there's also a hell of a row on overrun, whining, grinding and generally unpleasant!

This is my fourth fourtrak, so I'm used to all the strange noises that they make, but this noise makes me think front diff or transfer box.

So, Guys, what do you think?

Another quick question, this is a Sept 1998 model with aircon, does it have a timing chain or belt?

I hope it wasn't in 4 WD as

I hope it wasn't in 4 WD as this could be a trashed transfer case, smashed diff, or driveshaft output spline stripped.