Rule out the obvious first. Wheel tight? Put wheel on a known good one and spin it to see if wheel itself is the issue.
It would take a pretty hard side slam into the wheel and IMO the wheel would be the weak link but if it did bend the flange end of the axle you would have to replace it. If this has a VERY rusted brake drum, sometimes rust flakes will fall down if wheel is even removed for any reason such that the drum can no longer sit flush on the hub of the axle. Common her in RustoChusetts!
At the age if it is the axle you can probably get a used one. I'd bring old one to match it up. Pretty sure this axle removes from taking cover off (gear oil will spill out) look for holding bolt and when pushed a tad towards center (the axle) it will reveal a "C" shaped retainer that locks it in. IF YOU GO THERE - DON'T TURN ANYTHING with axle removed - JUST CAREFULLY REMOVE AXLE!
I think the axle is the bearing race for the vintage. Can't be sure if just mentioned is correct or not as a wagon, loaded up with toys like that could have a special order rear differential for towing, limited slip and not be typical to most so bring old one and if I'm right about axle being the race for bearing the replacement needs to be perfectly clean and clear or you'll be back again,
T
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Tom Greenleaf - MetroWest, Boston
http://acsource.net/acforum/index.php
(This post was edited by Tom Greenleaf on Mar 4, 2010, 6:44 AM)