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I recently had a problem with the diff/drive shaft in my 1997 Outback which caused a knocking of the driveline and the rear wheel (on inside of turn) to bind up. It was taken to the local mechanic who diagnosed it as worn linkages on the drive shaft. Later I was told that to get the drive shaft out the had to partially dismantle the transmission housing. Upon doing this they then told me they had to replace the solenoid in the transmission. Which they did without my authorisation or consultation (they consulted me when they already had it in pieces). My questions are firstly, does the transmission need to be dismantled to remove the driveshaft (my first Subi- but having replaced them on 2wd cars I have never had to dismantle (even slightly) the transmission). Secondly, what are the signs of a stuffed solenoid in the trans? I am pretty sure it wasn't necessary and seeing that part of the work cost me an extra $498.80 (the driveshaft was covered under warranty) it want to recover some of it - the labour at least ($195). Any advice would be great.

You can pull out all 4 drive shafts plus the tailshaft with out dismantling the trans or any part of it. It sound like the transmission rear solinoid was the only fault.
Steve

sounds like you've been shafted

Further to the previous, I have now had a chance to get it out on the highway and I have a nasty vibration coming from the driveshaft at speeds over 100km/h. I pretty sure the shaft isn't balanced properly because I lose the noise when I shift it into neutral... Suggestions? Anyone know a reputable mechanic that isn't known to rip off their customers within 10k's of the Brisbane CBD?

thats sounds more like a gearbox problem than a non-balanced shaft. The shaft still spins in neutral seeing as the rear diff is always connected to the wheels

Dan, for a mehanic in Brisbane try John French at Annerley. Serge and the guys know their Subaru's, will also use second hand parts if available to keep costs down. Contact them at 3391 6055.

Dwayne