Hey, not sure if you got your question answered yet, but yes it sounds like the bearings have gone bad. I believe you can order a new tub seal and bearings. Try Sears Parts Direct enter your model number and search for the bearings. They have a break down for you to see what you need. You may need a bearing puller, a slide hammer type of bearing puller may work. Ask the auto parts store and they usually lend them out. Also, don't forget to grease the lip seal when you do replace it all. There’s a special type of grease you need or you could probably just use marine based grease since it's water resistant. Here's the service manual if you need some help with disassembly and reassembly and it also has the parts break down... Good luck!
http://136.166.4.200/contents/Laundry/WM3677/WM3677xx_Service_Manual.pdf
You're in luck actually, here's a link of this one guy who documented his LG Washer bearing replacement. It's an older model, but from what I've seen, it's pretty much the same process and idea.
http://fixitwithpictures.com/Lgbearingfix/Lgbearingfix.pdf
Keith Nguyen
December 2010
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