2004 Jaguar X-Type 3.0 AWD

My x-type sounds perfect in park. However once I put the car into either drive or reverse the car makes a very loud grinding noise coming from beneath my feet and does not move if I try to accelerate. If I put the car back into park the noise goes away.

Any idea if the problem is with the transmission or transfer case?

 

I would guess it's the T-box

 

What is the t box

 

Yup, sounds like you've experienced the dreaded transfer-case failure.

Start trolling ebay for a replacement

sorry...
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Jaguar: Grace, Pace, and Space - Sir William Lyons