My 96 Legacy Wagon (automatic) makes loud knock sounds on any turns. The gearshift works but it "jumps" as you switch gears. I've been told by one mechanic that I need a new transmission and another that my trans is fine. I was also told that I need a new rear differential, then another mechanic told me that I don't.
I recently removed the rear drive shaft and the sound went away, but this leaves me with no 4WD, so I put it back in and the grinding/knocking on any right or left turns came back.
I guess the least expensive option is to take out the rear drive shaft again and don't fix anything. Will this be a problem long-term? Will it wear out any other parts?