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In Reply to: Purchasing e21 posted by David on July 27, 2001 at 18:59:56:
First thing I'd do is to replace the fluid w/ that Redline MTL fluid and see if that won't improve the shifting. I hear that MTL fluid makes shifting smoother, which could alleviate the grinding somewhat.
Also, one should check the condition of the driveshaft to be sure that it's not dragging on the transmission and affecting with the shifts. Look closely at the center bearing mount to be sure that it's not sagging the driveshaft in the middle. If that's good, then the next logical place to inspect is the rear Ujoings (connected to the differential). The only way to check this is to drop the front portion of the exhaust connected to the exhaust manifold, then unfasten the center bearing, and then disconnect the flange of the driveshaft off of the differential.