Banging in turn ... 2001 Legacy GT

[rljt60]

Rebuilding a 01 Legacy GT after buying with a blown 2.5L engine at 69,000 miles. Radiator sprung a leak into transmission cooler so water & fluid entered auto transmission. Fluid color was milky brown. Don't know how long it was that way. Replaced the 2.5L engine. Drained and changed filters on transmission. Now color is slight milky pink but will have it flushed completely after I discover what is causing banging noise. CV joints needed replacing so did it. Noticed driver side drive shaft out of differential sort of hung down against bearing when CV joint was removed in contrast to pax side shaft which was firmly sticking straight out. Bearings look just fine. No water found in differential. Oil looked ok when drained. It could probably use some shocks.

Problem: Nice and quiet on straight roads with smooth shifting. Turn left or right and pick up moderate to heavy banging noise which seems to be coming from front differential. Not necessarily felt in steering wheel vs feeling from whole car. I've seen stuff that suggested transmission solenoid, shocks, etc. However, with this much info, anyone got any "Ah Ha!, this is the exact problem" ideas? Many thanks as I'm building this one for my broke son to help get him on his feet.

Oh yes, I've heard if you put a fuse in under the hood that it turns the car into 2WD. Where does that fuse go, what size is it and which wheels become the drive wheels.
Thanks again.

[freakray]

Banging in turns could also be the CV joints or in this case, the diff side shafts - have you looked at those?

[rljt60]

Yes, as stated both front CV joints were replaced. Re: the output drive shafts, both bearings looked just fine but the driver side shaft dropped down against the seal (I could move it up and down, front and back) when the joint was removed whereas the pax side shaft stayed firm sticking straight out.