Rear end problems?? - heard a pop and saw sparks
I was driving 60mph and I heard a loud pop sound and looked out the side mirror just in time to see some sparks near the rear wheel. I only saw the sparks for a second or so and thought I blew a tire up. But then it was driving fine and I knew it wasn't a flat. I stopped around 1/4 mile later to check it out. The passenger side near the brakes/axle was smoking some leaked oil because I have a rear axle seal that has been leaking but not enough to ever need to add any. But something was hot as can be around the brakes and end of rear axle. It smoked for a couple of minutes.
I had it towed to a reputable shop. I think they told me they tried the following: they spun one wheel, the other side didn't move at all and vice versa. They also tried to pull an axle shaft but it didn't want to slide out.
What is the best way to test the rear end and how tough of a time is it going to be to get part? used or new?
What could have caused sparks? The brakes seemed fine.
Thanks
01 VX/ 09 Cube/ 87 Supra /73 Vega/ 67 Ranchero/ 56 Lincoln