unfortunately sounds like your bearing has gone. The seal has been breached, water and chemicals have gone in and washed the grease out of the bearing and deposited them on the clothes, now the bearing has no lubrication and will eventually fall to bits. A new bearing will cost around £25 and if the machine has been used quite a bit since the noise started you might also need a new spider (drum support) this will be around £30. It can be a little tricky to do, especially if you don't have the right tools.
dc, May 2008