First thing I would check is to see is if the slave is pre-loaded causing the clutch to slip. A slipping clutch will also stink.

A broken transfer case output shaft will also cause the car to behave in the exact same manner. I have done this in my car several times launching. The t-case snaps off clean in the yoke of the driveshaft. You would have to remove your driveshaft or t-case to inspect.

Also as Stephan mentioned it could also be an axle that has snapped off clean, however that would be more than likely in the rear diff.