  Polycrystalline La$_{2/3}$Sr$_{1/3}$MnO$_{3}$ (LSMO) thin films were
synthesized by pulsed laser ablation on single crystal (100) yttria-stabilized
zirconia (YSZ) substrates to investigate the mechanism of magneto-transport in
a granular manganite. Different degrees of granularity is achieved by using the
deposition temperature (T$_{D}$) of 700 and 800 $^{0}$C. Although no
significant change in magnetic order temperature (T$_C$) and saturation
magnetization is seen for these two types of films, the temperature and
magnetic field dependence of their resistivity ($\rho$(T, H)) is strikingly
dissimilar. While the $\rho$(T,H) of the 800 $^{0}$C film is comparable to that
of epitaxial samples, the lower growth temperature leads to a material which
undergoes insulator-to-metal transition at a temperature (T$_{P}$ $\approx$ 170
K) much lower than T$_C$. At T $\ll$ T$_P$, the resistivity is characterized by
a minimum followed by ln $\emph{T}$ divergence at still lower temperatures. The
high negative magnetoresistance ($\approx$ 20$%$) and ln $\emph{T}$ dependence
below the minimum are explained on the basis of Kondo-type scattering from
blocked Mn-spins in the intergranular material. Further, a striking feature of
the T$_D$ = 700 $^{0}$C film is its two orders of magnitude larger anisotropic
magnetoresistance (AMR) as compared to the AMR of epitaxial films. We attribute
it to unquenching of the orbital angular momentum of 3d electrons of Mn ions in
the intergranular region where crystal field is poorly defined.
