Oh dear!!
The IRD is the main diff for the front axle. The main input shaft from the gearbox to the IRD is hollow and the on side front drive shaft runs through the middle of this shaft. This part of the reason why the on side drive shaft appears to come from the gearbox.
It sounds like your IRD has shreaded up. I understand that normally it is the layshaft gears to the back axle that go but either diff could be affected by the central primary cause, a siezed viscous coupling.
Sounds a mess I'm afraid. Next thing to do is drop the oil out of the IRD. Its oil is independent of the gearbox. It is reasonably normal for it to be metalic in colour but if bits of metal come out too then that is definately not supposed to happen.
You will need to drain the main gearbox oil before separating the IRD from it. Also you need to drain the cooling system as the IRD is force cooled.
I really recommend you test the VC is not siezed first. To do so, and assuming the IRD has enough life to let you do this. Raise one back wheel. Put the car in first gear (no engine running). Handbrake off. Attempt to rotate lifted back wheel. Its going to be hard as the VC will resist. It should feel like the handbrake is slightly on so put your back into it. There should be a juddering slip. If you can't move it for all the trying then the VC is siezed and you must replace it along with the IRD. Also, if the VC turns up duff then inspect the back diff as well. The IRD and back diff have been having a fight to the death, it is possible both have been injured. If you don't replace a siezed VC then then new IRD and / or rear diff will die quickly.
Be advised this is not looking pretty or cheap. It may pay to look at a cheap Freelander as a donor.
Sorry for the bad news, keep us posted on how you get on.
Dave