Greg
If you have an original '68 diff with posi then it has the 1st design Eaton posi and those were very prone to cracking and as time goes by will break. I had Jack Panzica in here a few weeks ago with the '68 diff out of his '66 and that is what happened. The posi cracked and finally split in half locking up the diff and wrecking everything inside it. About the only warning you will get is a clicking sound from the diff, once you hear that I would stop and pull the diff before the case spreads and jams the posi spiders.
If the rear bearings are bad you are going to be able to feel them when checking the wheel off the ground. Check your u-joints for signs or rust or play in them. If your car has not been touched in many a year it could be all.
Posi chatter is from tight spider setup in conjunction with the 4 springs. Once the diff is hot the posi may chatter or hammer around corners, either turning or typically starting up. The additive chemistry has changed over the years and has been very good but I have seen a tuned posi chatter when using only one bottle of the current GM additive so I suspect it has changed again. I now use 2 bottles in a rebuilt diff and posi.
Good luck, if you need any advice let me know.
Gary