I recently acquired a desirable 96 Outback with 2.2, and manual trans, which is making a horrendous noise most evident where the axles join the trans, increases with wheel speed. I drained the trans expecting debris but there were no particles in oil although it was dirty. The axles are fairly new. Any advice would be appreciated--it appears to need tranny work for sure. If anyone in Salt Lake City is interested I will probably pass this on for about 2K [firm] since I found another car. Engine runs perfect, [130K miles], has cold A/C, heated seats, many new parts, and very straight [red] rust free body. Will be advertising this locally soon.

It is most probably the rear input shaft bearing..... Remove tranny, split it open, replace the $65 bearing, a few $10 seals, and re-install. Pretty easy - should take an afternoon.

 

GD

Thanks. Not sure if I have it in me, could be a good deal for someone if that's all it is.