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Car is finally running but now a driveline issue! Please Help!!

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TSiGoesPsSsSst

20+ Year Contributor
977
14
Sep 5, 2003
Swansea, Massachusetts
We finally got my car running but have ran into what seems to be a drivetrain issue.
The car seems to bind and lock up even when in neutral. You can't get the car in reverse at all, and when the cars in any forward gears it goes a short distance making noises and then locks up.
Initially we thought it was a transmission issue but the transmission and tcase were perfect when I pulled them out of my old car.
I pulled the transmission and t-case out of my old 96 TSi AWD with LSD and put it all into my new 97 TSi AWD. The clutch feels great and all so we really dont think thats the problem. Just wondering if anybody had some idea's on what the problem could be. Any help will be greatly appreciated!!
 
Also wanted to add we are using the same front and rear 97 awd axles that came with the shell when I bought it.
 
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