Subaru Repair: 91 Legacy. AutoTranny Power Loss and Howling sound., differential fluid, drive auto

Question
This car just this week started having powerloss problem.
When driving / accelerating the car seems okay but when the foot is off the gas (i.e. coasting) I can hear intermitten howling from under the hood.  First I thought it was one of the pulley bearings but then I'm not sure it is a bearing.  Maybe it could even be the tranny.
Anyway, the car would inntermittenly lose power.  When there is powerloss the engine is running.  I can put my foot on the accelerator and the engine will rev higher but the Tranny won't seem to engage.  When this happens the tranny seems totally disengaged.  If I turn the car off and restart the engine the Tranny will immediately engage again.  I'm thinking it's some kind of sensor for the Tranny but how can I explain the howling sound ?  Do I have more than one problem at hand?

thx
Jay

Answer
Jay,

Start with checking the level of the transmission fluid.If its low check the front differential fluid and see if it looks like transmission fluid.I suspect the pinion seals maybe starting to fail.When the pinion seals fail transmission fluid will push past the seal and into the front differential.Thus causing the transmission to be low without ever leaking fluid out on the ground.Also a front differential full of transmission fluid rather than just gear oil will make noise.As will a low transmission.I hope this helps.

Justin
All Wheel Drive Auto