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YOUR DRYER DEFINITELY HAS A BEARING RUNOUT PROBLEM (THATS THE GRINDING NOISE YOU HEAR - THE DRUM RUNNING ON THE SIDE OF THE CABINET ) . IT WOULD ALSO GRAB CLOTHES AS YOU SUGGEST . COST TOO MUCH TO FIX = GO AND SHOUT YOURSELF A NEW ONE IF U CAN .
This sounds like the support rollers are either loose or worn out.
Turn off the power, shut off the gas, pull the unit away from the wall carefully, and remove the back of the dryer.
Look around the perimeter of the drum and you will see the rollers. There should be 3. If they wobble or the rubber on the rollers is worn down, they are bad and need replacing. While you're in there, inspect the motor, belt, and drive assembly to be sure it's solid.
An appliance shop or parts outlet can usually provide these parts for your unit.
Squeak is caused by a worn out roller rolling metal to metal - Most dryers have rollers, felts and drum slides to balance drum rotation:
When rollers wear off, black powder leaks to rear felts and black marks are left on clothes.
Same thing happens when drum slides wear off (black marks are left on clothes)
It sounds like the rollers have gone bad. Its an easy fix. If you like the dryer a repair man can fix it cheaper than buying a new one. you may even be able to fix it. if you go sears.com and go to the parts section and put in your model number you can pull up a diagram to see how to take the dryer apart. you can also order the parts from there too. Good Luck.