[V8] Transmission Problem?

[Peter A. Green]

The beast suddenly lost drive power with 'expensive' grinding noises coming from underneath the front of the car.  There was no pre-warning indication that anything was wrong.  I had stopped for five minute to let my wife go into a shop, when she returned, started her up (car not wife) and backed out of the parking spot,  The car drove 50 or so yards - then it lost drive with load grinding noise from underneath - definitely a mechanical problem!

I had no drive - either forward or backward and when I placed the lever in drive - got the grinding noise!

Is this terminal?

Pete
V8 Quattro Pearl