Get underneath it and try wiggling the IRD output to the propshaft.
If it moves, the bearings on the output shaft are shot, and you've caught it before it explodes - your VCU and output shaft need rebuilding.
Test the VCU with the one wheel up test, then remove the propshaft and see if the noise goes away.
I wouldn't drive it any further without testing as there will be little in the way of any further warning - you'll get a ping followed by a loud bang in a few minutes, that's how quick they go.
EDIT: I should also point out, if the output shaft moves, it's already too late to do anything about it - if you want to run in 2wd you need a blanking plate - which is cheap enough to buy, but do not drive it on that output shaft again.