My father had a 98 Avalon with the same problem. It was only reverse you had to shift a tad off to get it selected until it was corrected. Very minor issue.
needs rebuilt. that noise you're hearing is the reverse fork and hub gone. Honda uses a fork and hub assembly on their automatics and a common problem with their early automatics. find local shop at ATRA.COM for more help
Hi so finally it has given up after 21 years well no surprises then old and clapped out.
You will need a whole new transmission.
I'm girlfriend was driving to the store and the rear view mirror feel on the shifter causing it to go into neutral, she put it back into drive and continued to drive about 2 more block until she got to the store. When she got back into the car and put it in reverse the car wouldn't move, she was able to put it into neutral and the car rolled back enough to drive off. When she got back she told me what happened so I got in the car and drove around the block just fine but when I put it in reverse nothing. It also makes a noise like a other engine is running when in park and reverse. Any suggestions would really appreciate it.