What does "drag[ging] in gear at idle" mean?
It might have just blown out the forward a clutchpack and maybe cracked the basket (hence the bang). The former is common, the latter is an expensive part to replace (and may merit replacing the trans with a reman, or depending on how you feel about it, the car). This problem would "disconnect" the drivetrain and would keep it from going forwards and, perhaps, backwards as well. How many miles on it/how often do you change the filter and fluid? It's funny that the engine now revs a lot easier, though.
best, whit