Alright, so.
My hub finally gave out and I ended up with a terribly wobbly wheel and a grating from the rear hub on the SCR2 during last Saturday's
Bhaji Ride with the cyclists from Panjim. This left the bike essentially out of action for almost a week. I had taken it to many LBS's in the past but no one was willing to bother with it. I even bought a sprocket tool only to realise that I would also need a chain whip to do the job.
Long story short, Ajay at Escapades in Ponda was finally free this morning so I cycled the 90+ Km round trip on the MTB with the offending wheel bungeed to my 'bars.
We took apart the hub and figured out where the offending part goes. It goes inside the hub and holds the freewheel mechanism in place.

Seems to have cured the problem. Ajay if you're reading this, I can't thank you enough for taking the time to figure out and fix the problem.