It goes through the cycles and it works when empty. But when its loaded it does not spin out very well the clothes are coming out very wet.Could this be the clutch, Transmission?

Probably the clutch which can be replaced by a do-it-yourself-er but it's one of the more difficult, more time consuming jobs. Parts ain't cheap either.

Try putting less in to it your probably over loading it, if your not over loading it then the problem could be a number of things for a worn motor/bushes/wiring/circuits/barring