Very Bad grinding noise, Video inside please help

okay all lets start, I was making a left or right had turn at low speed 5 mph or so as i was turnig it sounded like the axel popped out and it made a strange grinding noise. wile the car was still in gear it went to idle rpm around 500 rpm. When i put the car in neutral then 2nd gear i got grip again and was able to drive home. when i got home i tried to do the same thing. Taking the car to my storage untill i can find time to take it in i was in 2nd gear costing down and it popped out right after i stoped accelerating. I'm thinking it is the axel because it sounds like the little gears on your axel grinding and its only on the driver side of the car. but i'm no pro so thats why i will take it into the shop. unless someone can tell me what they think it could be or what i could look into. Hope i can get some help if not its okay, i cant really describe what is happening except the fact that its a grinding sound and its only on the driver side wheel area.

Then i tried this...

Okay so i jacked up the car and grabed that axel and was able to movie it in and out of trans(hope you know what i mean) and it was able to move about 2/8th inch. I was told that it should not move at all and if it does then i have a bad axle. I didn't have time to take it off but if you all think its a good idea then i will. IF you all have no idea and think i should wast my money giving it to a shop that will steal my money(lol) then i will!!

Hope this video will help you guys diag whats wrong.

http://www.youtube.com/watch?feature=player_embedded&v=Z6sfCtwWa5Q

Thank you