My washer ( Type 111 ser# CP2223491) does agitate but does not spin. The motor sounds as though it is running normal but the basin does not move. It smells as though rubber is getting hot while it is trying to spin. I have tried to turn the basin manually and it will not spin. Is this a transmission problem? Is it worth getting fixed?

You will have to replace the clutch. Look at this: http://dl.dropbox.com/u/8010163/Understanding%20automatic%20washer.pdf