Bad wheel bearing? (solved: Handbrake issue)
 

The construction workers in my neighborhood left a nice gap where they removed pavement from the road in an unlit area. Here is the result on my 2003 Boxster S. :

http://www.youtube.com/watch?v=tOclKNuNp3A

I noticed when looking under the car that both CV boots are cracked and falling apart. And the obvious horrendous noise coming from the wheel. Am I correct in assuming that noise is a busted bearing?

Wow!
 

I doubt it's a bearing but something is broke. I'm afraid you're going to have to get underneath for a further inspection.

You might try lifting the rear of the vehicle and turning the tire to see if you still have noise.

It could be a busted CV joint or other half axle related item.

Can't see your vid at the moment (work), but I would say regardless of what you do or do not find, get the car looked at, especially if from what I'm reading the damage is to one of the driven axles, and take pictures of that hole in the road and the condition of your car. If there is damage that can be related to that hole, you should have your town cover the repairs.

Yeah, in the video, the car is jacked up and i am turning the wheel with a socket. (its really tough to turn by hand) Lots of resistance and lots of nasty noise.. Sounds like loose metal pieces rolling around, along with clunking and grinding. When i turn the wheel, it feels almost like it is tensioning a spring (gets harder as i turn, then it will 'clunk' and you will hear the loose pieces and it will feel easier to turn and repeat the tensioning spring feel. Very odd..

My vote is for a damaged CV joint rather than a wheel bearing.

Yeah, I'm thinking so too. What would be the best method to test?

Could be handbrake (e-brake) spring loose. To check it, you need to take off the wheel, brake caliper and unscrew the disc.

When all is normal, should look like this photo (except with a hub in the middle).

http://graciecombativeskc.com/DWR2011/MH/10.JPG

sandyman65535 FTW!

All but one spring were broken and ground to pieces along with the bracket and hinge that makeup the handbrake system. After calling around I was able to get the 3 springs needed for about $25 per spring. insanity. Plus another $20 for the hinge and bracket. So I got it put back together for under $100.

Though, now I am aware of my busted CV boots... :/