No TC drop but it did cross my mind. I really wouldn't want to do it unless I had one of those slick belly crossmember / skidplates with a built in 1" drop or something.
I was almost sure its the DS because I've been driving around with it disconnected (the clunk would occassionally appear, even in 2wd and with hubs... ) so I wanted to be sure it was the DS. But tonight I had the same clunk with the DS disco'd. Damn - this sucks. So now my next guess is possibly the passenger side wheel bearings or a bad hub? (pulled it and it looked fine), but I'm really not sure. Might replace them since I'll have the axle apart in the next two weekends.
It is definitely drivetrain and not suspension. That I am certain.
Talked to the guy that sets up my gears, and he said it might be the brakes. I think he may be right. He said the pads might be catching on the disc and slamming against the bracket (knuckle). That would explain why it happens when I'm not braking but when I apply the brakes the clunking stops. Not sure how to fix it yet.