From what you say, I am suspecting a broken component in the front axle. Most likely is one of the free wheel hubs (could be stuck in the free position rather than broken) - I do not recognise the type of hub.
A couple of steps you could take - 
1) Drain the front diff and check what you drain for any unexpected bits of metal. A broken front diff is unusual, but can happen.
2) remove both free wheel hubs and check whether the stub axle is turning (note that because of the differential, it only takes a break anywhere on either side to stop both wheels from driving.) 
3) Next step would be to remove each front hub assembly and withdraw the half axle and universal. This will be needed to remove the diff.
				
			 
			
		 
			
				
			
			
				John
JDNSW
1986 110 County 3.9 diesel
1970 2a 109 2.25 petrol
			
			
		 
	
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