Subaru Repair: subaru torque binding, legacy wagon, side firewall

Question
I just bought a 1997 Legacy wagon from a friend, and it has a problem when I turn the wheel hard for turns at low speeds (like pulling into a parking space).  The dealer says it is torque binding and will cost over $2000 to fix.  Someone told me I can disengage the AWD by pulling out a fuse and the torque binding will go away.  Is that true?  should I repair the car, trade it in, or remove the fuse?

Answer
Both are wrong. The repair should be less then $1000, and you can eliminate the MPT clutches by INSERTING the fuse into the FWD box. Should be located by the wiper motor on the right hand side firewall. Whats happening is the MPT (multi plate transfer) clutches are binding in the rear of the transmission. You will also need to replace the transfer solenoid back there also. Parts should be around $300-400, and labor less then $600. good luck.