ABS, traction control, and E. brake warning lights on

[PhastPhil]

My 2007 AMV has an issue with the trans-axle. When driving,all of a sudden there will be a loud cluck and jolt causing the traction control, ABS control, and E brake red lights to show on the gauge cluster. At the same time,, the engine revs up. It appears that the transmission has down shifted, but the gear shift doesn't move. Has anybody had this issue? Also, if I have the cruise control engaged when this happens, the cruise disengages.