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You've described the classic symptoms of a binding universal joint, to a T.
Probably the lower universal. Try soaking the heck out of it with PB BLaster or another penetrating oil. That may help. If not, it needs to be replaced, and its neither fun nor cheap, unfortunately. One of the more tedious (and dirty) jobs I've had to do on my cars. Made a world of difference in my 87 sedan though.
The price on these u-joints has been steadily increasing from "ridiculous" to now, "brutal". See www.fcpgroton.com for about the best price around. Good luck!
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Rob Bareiss, New London CT ::: 87 244DL, 88 245DL, 90 745GL, 84 242DL project, 89 244 parts, 88 244DL to replace the 87
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