This machine likely has a bad transmission. It is designed to spin only when the motor is turning a certain direction and is not supposed to spin while agitating. No telling what you found under the machine, debris-wise. You gotta ask yourself if putting $200 into this machine to begin with is economically sound.... my first option would be to start shopping around. It would be like opening a can of worms to strip this unit down for a major overhaul like that, as there are tub bearings and seals to worry about as well. This unit was not designed for durability.
It was made by a branch of Frigidaire, and you may get some insight by looking at the Frigidaire Top Load Manual
to see if you want to tear into it or not.