Toyota Repair: transmission problem?, broken axel, transmission failure

Question
On a 1997 Camry LE with 128,000 miles,the problem is, when I take the auto transmission into any gear, the car does not move when I press the accellerator. When I put it back into park, it makes a grinding noise like a spinning gear is trying to mate with a stationary gear. It's not a real bad grind, and the shift lever is easy to put into park. I checked the tran fluid level and it is ok, and the color is red. I got close to the front axle area, and the noise seems to be a little forward of the axles in the middle of the car. When I put it in drive or reverse, the axels did not move, so I guess it's not a broken axel...Could this be an entire transmission replacement or maybe just a few other parts?  

Answer
It sounds like there is a differential problem or one of the axles has come out of the transmission, check to see that both axles are fully inserted into the transmission, if both axles are all the way in there is a severe transmission failure which will require replacement of the transmission.