Wagonist, thanks for your reply
The 94 Loyale has the push button AWD, no center locking diff.
When I speak of a driveshaft, I mean the hollow shaft connecting the tranny to the rear diff, not the CV/halfshaft. In my case it's two pieces.
Another new clue, while taking the drive shaft off, I noticed ALOT of old gear lube caked around the rear of the tranny. When I got the car, the gear lube was half on the dipstick, I topped it off, but I fear the old owner ran it low, since it looks like a bunch is caked on the exterior of the tranny. So which part would get chewed up primarily if this is the case? I imagine the whole thing is compromised? It's too bad, it runs like a champ in 2wd, maybe I'll scrape AWD sticker off and put some tape over the push button on the shifter.....Fixed! (and for sale!)
Thanks for all the replies guys.