[Loud gear noise, no parking gear]

CV axles are fine. I'm thinking torque bind on the noise while turning. All the symptoms check out.

Next step is to add the FWD fuse to see if symptoms persist.

I'm guessing at this point that the duty clutch solenoid may be to blame?

[Loud gear noise, no parking gear]

18 minutes ago, Suzam said:

Sounds like it could be a free wheeling drive axle. Have you checked the CV joints?

Classic symptom of "park" not working since there's an open drive shaft. 

Are you saying the noise continues with the car stopped with the engine running or just when moving?

Thanks for such a prompt answer, much appreciated.

Have not checked CV joints yet, waiting for this monsoon to stop.

Noises stop when car is stopped. Start when changing gears and when first starting to move.

[Loud gear noise, no parking gear]

2000 Legacy Limited. AT, 2.5, 160K miles

ZERO serious issues since buying 12 years ago.

Noise originally started when turning sharply at low speeds. Assumed CV joints but wasn't driving much so put it in the back of my mind.

Made real sharp turn coming out of driveway and that's when the "gear" noise started. Sounded like loud teeth noise. Drove a few hundred feet and noise got considerably worse. RPM and speedo way off I noticed. No matter which gear I selected, same gear noise. AT Temp light started flashing and I immediately stopped. When I parked, the P gear would make same noise and car would roll, had to use manual brake. 

Fluid is clean and doesn't smell, it does look like it was overfilled?

I am a heavy diesel mechanic, I know my way around but certainly not qualified to diagnose any further.

Any feedback greatly appreciated.