If the clutch is adjusted as you said and the grinding occures when you shift from 1st to 2nd, You can bet on having a bad 1st -2nd syncro. ring in the transmission. Depending on how long it has been grinding will determind if you would have to replace 2nd gear, 1st-2nd shift sleeve,shiftfork along with the syncro. ring. It should be grinding down shifting from 3rd gear to 2nd gear also. The transmission would have to be "torn down" to repair.

Sally, I can repair the transmission , but here are some things to consider. Due to the age of the transmission, there may a problem with getting new parts to do the repairs without paying though the nose for them. I can check my suppliers and see what they have and prices. I would give them the worse case I could think of and see what happens. Some times its cheaper to replace other than to repair. You can buy rebuilt units but you still will have to use your orginal axles/tubes, brakes which would require some seals and other small parts. Either way you would have to bring me the transmission (out of the car) as I don`t have a place to park the car as you cannot roll it around with the tranny out. Just let me know what you want to do.

Thanks for your offer!  Got to think some things through with my husband.  Wish we could make the meeting but we are giving a mission program at church tonight.

Good deal !!  Glad you found someone in your area to repair your tranny. I was wondering if you had.  You had better stay on good terms with James as you will need him. Old school Techs like me and James are slowly fading away.
   :lol:         Hope you can make it down for BP-8