I'm hearing some noises I don't like from my CV joints so I know it's time for new ones. I'm thinking about getting new ones from Raxels. Just curious, has anyone had a CV/halfshaft failure while driving the S? I wonder what kind of damage could occur if that happens.

 

As far as I know, CV's don't make noise when they are on their way out.
If they are pitted (from being lowered or from normal wear) you get vibration under accelleartion but no noise.
If the inboard CV's make noise the spider is broken = no drive.
The noise you hear are the splines "slipping".

On FWD cars CV's can make a clunk / thud when cornering under load.
The angle between the axles on FWD CV's when cornering is way more than on RWD CV's going through the suspension travel though.

IOW: I would not be so sure your noise is from the CV's.
Unless the boots are gone and rusty water is dripping out of the CV's after some rain

 

Sounds like loose axle nuts to me.

The noises are coming from the bearing races shifting on the hub...destroying it. seen it too many times.

Do the axle nut TSB now and you may save it in time.