Sounds like a broken clutch.
Diff doesn't go out without a bang and a cracked trans case with fluid everywhere.

Chances are the disk is broken at the hub or the friction material is gone and it is spun out.

Figure $600-$1000 unless you do it yourself.


Former owner of '99 CSVT - Silver #222/2760 356/334 wHP/TQ at 10psi on pump gas! See My Mods '05 Volvo S40 Turbo 5 AWD with 6spd, Passion Red '06 Mazda5 Touring, 5spd,MTX, Black