300TE 4Matic help!? (starter & locked rear wheels)

[ktang]

Hi,

So, I traded my bike for a great looking in and out 1990 300TE Wagon 4matic that wouldn't start. Aaand...

Starter:

The starter just makes a whirring noise w/ a charged battery. Bad starter? How the hell do you get it out!? (Top bolt seems to be the hardest so far)

Locked rear wheels:

In addition, the rear wheels are totally locked up, and it isn't the brakes. I can move the wheels and I notice that the drive-shaft will move about a half inch either way and then stop, locked, IN NEUTRAL, while rear-end is jacked up.

What's going on? Is this thing a total turd mechanically? Can the average bear tackle it?

Thanks!!
-Kurt