The hub should turn very easily. With the wheel fitted, give it a decent spin. It should carry on rotating for apx 15-20 seconds easily, possibly more. I've never timed it, but there shouldn't be any resistance.
When you do this, have a listed for any gumbling/grating noises. It will indicate a bearing shot, which is what you are hearing. Compare one side to the other, to see if you can tell the difference.
HTH.