not good! when you turn a wheel by hand, you are turning the diff, so either the transmission spins and the other wheel rotates with the diff (so this would indicate a partially stiff diff, like one filled with grease or a fancy expensive LSD) or the transmission stays still and the other wheel spins backwards (so this would indicate either a very sloppy diff or a stiff transmission).
if your other wheel stays completely still when rotating one by hand then it's probably about time to put some new wheel bearings in (check ebay for some 608-rs bearings, cheap ones are about £1, branded ones like SKF are more like £2.50).
the tub of grease I got was castrol LM2 (was on half price offer). Bog standard general grease is usually LM (Lithium Multipurpose). The number next to it is how thick it is, 1=runny, 4=tar. As a rule of thumb, runny grease lasts longer because it can take more of a beating than thick grease (thick grease gets mashed up and starts to break down over time), so a #2 or #3 should be OK. let us know how you get on!