sounds like the drum bearings are the problem. The wear on the glass indicates drum movement. take the rear drive belt off and turn the drum,this will eliminate the motor if the noise is still there. Check youtube for howto repair.
namam
November 2011
Well I don't mean to be the grim reaper, but I've just stripped ours (due to the exact same issue) thinking it was just the bearing on the drum "wrong" there is a spring loaded bearing behind the drum and this has shattered. If this is available as an aftermarket part it wont be too bad if not the washing machine will be scrap as a drum wont be too cheap.
Kev
February 2009
sound like your drum is gone. happened to ours while under warrenty. ours is 7yrs old now & happened again. any ideas how to fix let us know.
a
January 2009
I have also noticed there is wear marks on the left and right hand sides of the inside of the glass in the door.
howtomendit.com for free repair help, information and advice.
Try fixfault.com to fix washing machines.