I picked this car up for a steal because the owner just wanted it gone. However upon trying to get it out of its spot that it had sat i was spinning front tires only (Auto trans) .The driveshaft is still in place and the fuse for the fwd is not in. The light on the dash for fwd does not come on but it will not power the rear. Has anyone run into this before? 

parking brake released?

possible that the rear brakes are seized up.. have had that happen before.

Parking brake is release and the rear wheels do turn. The vehicle came from a friend of mine's father who told me its been fwd since they have owned it. I have the AT oil light blinking on cold startup and upon installing the fuse still no light on the dash. Im assuming it is most likely the common duty c solenoid but i am having it scanned today to confirm.  I will update with the results 

I suspect 2 things went wrong in the tail housing of your transmission.  1) The clutch basket has sheered off of the input shaft.  2) Duty C solenoid has failed.  There is a special process to pull the code from the blinking AT lights.  A scanner will not do the job.  Search around for the handshake process.  Below is a link for this type of problem.  To have a pro do this job will be at least $1,400.

https://www.ultimatesubaru.org/forum/topic/121116-at-light-flashes-16-times-what-to-do/?tab=comments#comment-1021625

Check and see if the rear drive shaft is spinning when the front wheels are but the rears are not.  

I've seen where one of the rear axles had popped out about a 1/2" and the rear drive shaft power was not going anywhere.  Installed the rear half shaft into the rear differential properly and problem solved.  Pretty quick check at the rear diff, just make sure both half shafts are fully inserted.

Transfer clutches and/or duty C solenoid have failed.

less likely to be solenoid failure I think because the 'default' before 2005 is AWD.

 

seems like a mechanical/physical issue.