Two days ago, I started hearing a faint clicking noise from the rear of my MY02 at slow speeds (< 5mph). The noise varied with speed, but was independent of throttle position, braking, clutch engagement, and gear. I thought it was something like a wheel bearing, and told myself I would take it to the mechanic on Monday, and not drive it too much over the weekend. There was no fluid buildup on the floor of my garage. Last night, on my way home and only a few hundred yards from my apartment, I heard a horrendous CLUNK noise, had 100% power loss, and heard an awful grinding noise until I came to a complete stop, regardless of clutch engagement or gear position. The car wouldn't move and only made grinding noise when engaging the clutch.
Upon inspection, the left axle seal appears to be leaking:
http://xak.us/diff.jpg (see discoloration down the side)
My theory is that the seal started leaking, but because it is located so high (in elevation) on the diff, it did not leak at a standstill (i.e. no puddle in my garage), but leaked under load. It lost fluid, and eventually heated up from friction and, well, exploded.
What kills me is that if my theory is true, and I had jacked the car (in 90+F heat) on Saturday and saw the leak, I would have topped the fluid and taken it directly for further inspection and seal replacement, and possibly have avoided now having to replace the diff.
It's currently at Jake's Transmission shop on recommendation of a few friends for a diagnostic. I can get a brand new LSD gear unit (I think that's what I need for a rebuild) for about $800, or an OEM pumpkin for $2789 through Honda Performance Development. I have also seen low-mileage AP1 pumpkins on S2KI and S2KCA go for $500-1500. The guy at Jake's said a rebuild would be well over 12+ hours labor @ $75/hour, so that's nearing the cost of an entire pumpkin. Not to mention a new one would be around the cost of two used.
If you have any recommendations, advice on Jake's (and/or Happy Jap's and Performance Chassis, the other two shops I was considering taking it to) or anything else I'd be entirely grateful.
Thanks in advance from a sad autocrosser...

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2015-2017 President
2014 Track VP
2013 Autox VP
2002 Subaru WRX [dd]
2002 Honda S2000 STR #3 (retired...for now)
1992 Acura Integra ChumpCar #118 (retired)
2004 Toyota 4Runner V8http://beastmoderacing.com