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I have a 1996 wagon. On full wheel lock in reverse the back wheel(s) lock. I have been advised it requires a new solenoid in the auto ($600 parts+labour) The turn appears heavy also when traveling forward. Can you confirm the diagnosis please? They say the auto oil is OK.

Obviously, without the benefit of carrying out a full diagnosis, it's not possible to say for sure, but from your description, this quite likely the fault.
The solenoid operates oil pressure to lock up a clutch pack applying drive to the rear. With age, the solenoid can become lazy and doesn't completely close off oil pressure.
To attempt to do some self-diagnosis, you can try inserting a fuse into the FWD slot which will supply a full voltage to the solenoid. Depending on how weak the solenoid has become, this should close off oil pressure and eliminate the problem. However, if the solenoid has completely failed, there may be no change.
In summary, if your mechanic has done a proper diagnosis, this is a highly likely cause of the problem.

Thankyou for your response. I inserted the fuse into the FWD slot, but there was negligible change. Your conclusion that if there was no change, the solenoid had probably completely failed proved to be correct. The garage have completed the repair and the problem has been rectified. I have also noticed an improvement to the heavy steering.

Thank you for the feedback. This scenario (where there is negligable change by inserting the fuse) is quite common. The solenoid is weak and only partly operating, so you get a small change. This gives you enough of an indication to conclude that the solenoid is hardly working at all, therefore requires replacing.
I'm glad the problem is now resolved.