Thanks crash. I am looking into this. Although I'm having a very hard time getting a hold of anyone at west coast cruisers. Are they the ones you ordered your tc from?
I spoke to another shop and they said that it sounds like the pump is going and it's not providing enough pressure. Could a failing pump and low pressure cause the clutch material to "grind away" in the tc? It seems like an odd idea, but... After I had the tc rebuilt everything felt great! No noises, rattles, nothing. But then it slowly got worse again until now. Maybe I should just go all out and order the whole extreme trans and a Gturbo at the same time...