I opened up my washer to turn cloths over to the dryer and found my cloths to be soaked at the bottom of the bin. I've been doing some troubleshooting to figure out what's wrong with my washer and have figured out the following

1. The washer will agitate when in the wash cycle.
2. The washer drains the water out just fine.
3. I bypassed the lid switch so I know its not that.
4. I can hear the washer TRYING to spin but it doesn't budge. I took off the front of the washer (where the motor is mounted) and found something unusual during the spin cycle.

Here is a link so you can see a picture of the motor I am talking about.

http://www.partsreadyonline.com/item.php?ItemID=1382

The little clip on the bottom of the motor (in this case the left of the picture) spins but the rest of the unit does not. For clarification the entire wheel does not turn, basically its not the belt slipping when the wheel turns.

Any ideas?

There is a clutch on the motor that engages when it goes into spin. The surface is like a brake pad. You need to replace it because it's worn out.