Hello all!
I just bought a 98 AWD v70 that needed a fuel pump. The guy told me he tried to tow it with a dolly, but something locked up, so he took it off the dolly and just dragged it behind his car (real moron, beat the hell out of the front of the car while doing it too...) Anyway, upon hearing that it would be $1200 to fix the fuel pump, he sold it to me.

Anyway, i got the pump changed, runs fine, but when driving down the road there is a LOT of drive line noise, and the car constantly feels like it's being held back. My question is, what would have gotten damaged? It sounds like it's coming from the front, i.e. not the rear differential. But i guess i can't be sure. It gets REALLY bad once you get above 40mph or so. It seems to shift fine, so i'm thinking it's possibly not the transmission. Transfer case?

Hoping you guys can shine some light on this. It's a great car, unfortunately it was owned by absolute idiots... hopefully i can save it.
Thanks all!

 

** UPDATE**

I raised the car entirely off the ground and tried to discern where the growling/vibration is coming from. Couldn't really narrow it down, so i disconnected the drive shaft to eliminate some variables. The growl is still VERY present. I checked the fluid in the transfer case and it appeared to be low so i added probably a half a quart and filled it up, the lube that overflowed out was a murky coffee colored substance...

Tested it again after the top-off, the growl and vibration are still incredibly present. Once spun up to around 25 mph (stationary obviously) the growl is horrible. The vibration can easily be felt throughout the car. So i'd say it's pretty safe to say the transfer case/bevel gear/angle gear is thoroughly trashed...
this seem like a correct assessment?