Sounds like early bearing failure.... The rubber seal is breaking up, allowing water to wash the grease out of the bearings and into the drum. Check for bearing failure by seeing if there is any vertical movement between the moving stainless drum and the fixed outer drum. There should be no vertical movement between them - if there is the bearings have failed and will soon collapse. Power off, drag machine out onto the floor, remove back cover. Check for rusty spray around where the pulley shaft exits the drum - another indication of seal and bearing failure. Another method of checking is to remove the drive belt and rotate the drum by hand - there should be no noise, roughness or resistance to rotation. Changing bearings is an involved job, only attempt if you are mechanically competent.
If you're a novice, dont even go there, get a professional to do it, but its going to have to be a judgement call taking into account the high labour costs (at least £120) and the condition and value of the machine.
Repair and service your own washing machine. Go to www.2ndwave.co.uk/manual.html
dannyboy, March 2009