1998Legacy outback trans/diff problems

[RussellW]

my car started making a faint grinding noise which sounded like it was coming from the rear of the car,only heard when in first gear,going slow.The car is an automatic.I found the caliper slides on one side stuck.The rotors looked pretty bad as far as rust and cleaned and lubed everything.It still had a faint noise but no problems.I let my wife take it to work one day and she told me when she pulled into work it felt like it lost a gear and didn't want to move.I drove it and I didn't have any problems for a while.I replaced the trans fluid and diff fluids,putting a synthetic blend in diffs.The car has 186000 miles.I drove it for a while and went to back out of a parking space and it didn't want to move,pressing the accelerator,it jumped and stopped,like I had a binding in a differential.I got it home and in my gravel driveway,backing up,my right front tire was locking up.The inner cv boot has been torn for a while on the right front so I figured the joint had failed.I replaced the axle.The problem still exists.I put it on jackstands and ran it.At first it was bound up but became free.I got under it and listened while in drive,reverse and neutral.A noise is coming from the area of the front differential,even in neutral.I cannot find information on possible problems or a transmission manual.I have rebuilt auto transmissions of different makes and I am willing to do this myself but I would like to know what I'm getting into.Any information would be helpful.

[john in KY]

As I understand, one of the front wheels is locking up. Not a differential problem. If the diff failed, there would be no power to that axle. Has to be a wheel bearing or caliper problem. Also my understanding is it is hard on the CV axles when the car is on jackstands and in gear.