Motor runs,chuck turns. Sound like metal grinding. you can hold and stop the chuck, no power. Stopped working after using hammerdrill. Clutch stopped working a long time ago. Screws were stripped by the full force of the drill. The drill is a DW988 type 1 18v by DeWalt.

Your compressor clutch is burnt out.

May have stript the gears

are you getting power to the electric clutch?

must have burned the clutch, says to break it in slowly over a few uses.

you could have the torque setting set to the minimum setting, in which case, what you described will happen.
check the torque setting and adjust it.
are you able to turn a screw?

The grinding you're hearing is the normal sound for the clutch. There's a ring with numbers on it the higer the setting the more torque it'll take for the clutch to slip. Many of the newer drill & drivers have a drill setting at the high end of the clutch settings others have a separate drill & driver setting. This site will give you most everything you need.
http://www2.panasonic.com/consumer-electronics/support/Building-Products/Cordless-Tools/Drill-Drivers/model.EY7542LN2L

These are fairly easy to disassemble and get back together, take it apart and find out what got stripped, It might be an easy fix, then again, it might be going back to sears. They will take it back no matter what. Hope this helps.

sound like the clutch has gone

Check all connections. Check plug and power. After that, it may be dead.

Hi, I can determine a motor bad by the noise. Does it hum while holding the start button or is it a grinding deep sound? It can sound like the motor starts slow but once it gets going, it is ok. Sometimes the house lights will dim when the motor statrs going bad.
Let me know if I can help you further.

Vic