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Gearbox diff noise. Possible circlip

  1987 Corvette C4 4+3
I recently fitted my low mileage gearbox into my 172. But on the test drive I have a loud wining noise. I found that if i jack both sides of the car up it is coming form the passenger side of the differential.

If I start the engine and put it into gear and I secure the passenger drive shaft so the drivers side turns there is no noise. But if i secure the drivers side drive shaft so the passenger side turns I get this loud noise.

I know its not the drive shaft as it makes the noise with the drive shaft removed.

It just seems strange that it only does it one side and im wondering if it is a possible circlip problem.

Is it possible to get the circlip not aligned up properly or something. As surely if it was the diff bearings it would make noise if either drive shaft was turning not just this one side.

Can someone please help as after i sort this problem i have nearly finished the car.
  Megane r26
The circlip an washer fit in a deep groove in the box so I couldn't see it being misaligned. Whip the passenger side shaft out an you'll soon see.
  1987 Corvette C4 4+3
I have taken the drive shaft out already to see if it was the drive shaft making the noise, which it wasnt. The circlip looks fine but I dont understand how the noise can only happen when the passenger side is turning? Surely if the diff bearings were bad it would make a noise even when the drivers side was turning
  1987 Corvette C4 4+3
Found out the problem. I removed the circlip and washer and then removed the cup that the drive shaft slots into. Unfortunately i can now see the problem. The sun gear on the other side of the diff has damaged teeth which is causing the noise :(. Box back out again grrr.