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Consumer Reports says "avoid". That is, avoid all the AWDs, 1998-2001. They're on their "used cars to avoid" list.
Search the Brickboard archives for the terms "angle gear" and "bevel gear".
It kinda depends the kind of mileage you put on your car. If you only do 10,000 miles of driving each year, and are willing pay more attention to your tire diameters than to your family, you may be OK. Since I do a lot of driving, (about 25k annually), I'd tend to shy away from even the new Haldex system. Even thought it's not the partly-baked idea of the original system, there's still 2 of everything to break. You can buy a lot of snow tires for the cost of the AWD components!
BTW, Consumer Reports doesn't recommend any Audis or AWD BMWs at the moment either.
-bill d cat
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