Toyota Repair: Repair Transmission, metal particles, toyota corolla

Question
1994 toyota Corolla Engine 16 valve EFI automatic Transmission Vin 1nxAE94A94A9MZ220986
Dear Mr Ritter

Three months ago I had two front axles replaced and then the other day I heard a grinding noise coming from under motor, I stopped and then I put it in drive and it locked up on me, So I got it towed home , It runs perfect in Park and Neutral but when I put it in Drive or Reverse it makes a loud noise, its still locked up. I jacked up front end wheels are free, can you help me out here. I would like to know what procedure I should take, to pin point the problem,  

Answer
It sounds like this is a differential problem and it may be serious, the oil may have leaked out and caused differential bearing failure, check to see if one of the axles has backed out of the transmission housing.
You need to remove the axles and check the splines for damage, drain the oil and look for any metal particles in the oil or if the oil is burned, if that is the case the transmission will probably need to be replaced.