One problem related to engine grinding noise has been reported for the 2007 Nissan Xterra. The most recently reported issues are listed below. Please also check out the statistics and reliability analysis of the 2007 Nissan Xterra based on all problems reported for the 2007 Xterra.
While accelerating, merging onto a major highway, and without warning the vehicle lost power lunged forward and started making a loud grinding noise. I was nearly hit from behind by a vehicle having the right-of-way before I could get to the shoulder of the road. The vehicle was towed to and was diagnosed by a mechanic as having "cross contamination of transmission fluid and antifreeze due to transmission intercooler failure". This incident has been reported to and dismissed by Nissan as not being a frequent problem for them.