Originally Posted by utra
The mechanic took apart the transmission and found that "the clutch was disentegrating". There were bits of clutch everywhere in the transmission. The mechanic had the clutch inspected by the clutch doctor, the only thing other than that there was unusually extreme wear was that there was an large amount of what he thought to be anti-seize inside the housing. The mechanic then resurfaced the flywheel. The mechanic also noted that the shaft the throwout bearing is mounted on has a little indentation in it.
This says either the release/throw out bearing or the pilot bearing in the flywheel has broke open or failed as they are both sealed grease bearings.