Over the last few months I heard the pilot bearing making noises - I also noticed some clutch slippage (note that the VSS had also just stopped working). I ordered an Exedy kit with everything included. Last weekend I pulled the transmission and installed it. Everything appeared to be fine. Over the next day or so I began hearing the same noises as before - a mix of a metal on metal sound and a squeaking sound. Then I noticed increase resistance when taking off from a stop. THEN I noticed that the car wouldn't drive in reverse for more than a few feet before lurching to a stop (like an AT dumped into PARK). The transmission began making a lot of noise as well. It was making less noise when the clutch pedal was depressed but the noises were still there. When I try to shift into gear from a stop it's very difficult. It seemed to go into reverse without a problem (other than mentioned earlier), but I really had to work to get it into gear. The rear shifter bushing is installed correctly, the fluid isn't low, and nothing is loose. The car will drive forward but it does make noise.
I pulled the transmission back out hoping to find something in the bellhousing to be corrected, but it was perfect. Something was keeping the transmission from freely moving (even in neutral). So, I drained the fluid out of the transmission/diff/transfer case. Immediately noticeable was some rolled up and broken pieces of 'something'. Turns out to be plastic material. I thought it might be from the VSS gear getting bound up and shredded, but it's in the transfer case. Here's pictures of what I found. I'm not sure what to think of the gouges in the gear pictured, and I do not know what the arrow points to in the 3rd picture that is burned. I really hope that someone can be of help here.