I got the trailing arm off today and this is what I found. I think the left bushing is toast and allowed the trailing arm to shift and this started rubbing. The bushing flange is rubbing on a weld that holds a peice of metal that was part of the chasis stiffening effort when the car was built. (I think I'll order the poly-bronze bushings).
Cheers, Elliot

get a set of the roller bearings. you won't regret it!

i should have let you drive my car in seattle ... 250lbs springs and as smooth like a hot knife through warm butter ...
Andy