Case 580K Phase 1 Grinding Gears

I have a 580k phase 1 with fourwheel drive. Today when I was back dragging some dirt something seemed to let go in the drivetrain. I heard a grinding noise and it stopped moving. When it would grind the rear tires would move slightly then return like something was slipping. It did it in forward and reverse and also in 2nd gear (I didn't try it in third or fourth). I see there is an inspection cover on the top of the transaxe that i'm going to get into tommorrow, but I was wondering if...

Case 580K Phase 1 Grinding Gears

Case 580K Phase 1 Grinding Gears