The LG error code OE simply means "the pump is blocked". Presumably the water isn't being emptied properly. As with all error codes it is possible that there is a cause other than the exact description in the error code explanation but basically this error means as far as the washing machine is concerned it thinks the water isn't pumping out. A pump, or filter blockage is the most common cause but it could be caused by other faults such as a faulty pump, or even a blockage in the drain hose or somewhere else in the system etc.
LG themselves have some information on this error code..
http://lgknowledgebase.com/kb/index.php?View=entry&EntryID=6273
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The code OE is a draining error. The washer has sensed that the water has not completely drained all of the water within 10 minutes and will display this error code. The grinding noise you are describing is most likely a failed drain pump or clogged with foreign debris.
If you are unable to resolve the issue by cleaning, I would recommend replacing the drain pump.
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Getting code OE during cycle
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