Clunking when spinning hub, am I screwed?

First time post, obviously. But I've had my 93 Subaru Legacy for about 5 years now, and let me tell you it is an awesome machine!

Now to the bad part...
When driving, I hear a series of 3 clunks coming from the front driver's side tire. I assumed it was the CV, so I pulled the tire and it looks like the CV is perfect. When I try to spin the hub manually, there is a lot of resistance. I used a breaker to spin the tire and now I hear a series of 3 clunks about once per revolution.

I'm not horribly familiar with this part of my car, but I'm wondering if it's possibly with the gearbox or transmission...really hoping not, though.

Any ideas or suggestions would be awesome!

1993 Subaru Legacy.
~170000 miles.
Transmission has been slipping off and on for the past year, but hasn't ever made any noise.

Auto or manual? Slipping trans could be bad clutch or you need to do a few drain and fills. Pics of your leggy please.

Is your ball joint good? Mine clunked when it was bad. Did you spin the hub with the trans in gear or parking brake on, lol?

Sorry for skipping that detail. It's an auto, and I was spinning the hub with the car in neutral and the parking brake on. The hub will spin about 3/4 of a revolution, then get stuck. If I force it enough, it will continue to spin and then get stuck again. The sound appears to be coming from where the CV joins to the transmission/crank case thing?

I'll get pics of her soon!

Have you checked your trans fluid levels? Other than that I'm not much of an expert on the 4EATs. Drain and fills can help them though, but it might not help you.

You're in SLC too! Maybe I'll see you around. Look for my wagon and my black SS!