[wilf]

Tony B - been thinking some more (even tho' it hurts) - are the engine/box/bellhousing all from the same car? What I am trying to say is that even though you may have alignment dowels in there between the block and the bellhousing, if the whole assembly was not originally "together", you could still have an alignment problem.

ALso, how sure are you that the clutch is clearing properly - if you jack the car up ( and use axle stands of course), put it in gear, have an assiatant depress the clutch, can you turn the propshaft easily or ois there any drag? As the assistant slowly releases the clutch, can you feel the "bite" point as you turn the propshaft?
You will have to turn the propshaft, not a rear wheel, since I assume you have an "open" diff???

I am still trying to think of "cheap" fixes - it could be you still have clutch drag. One other way to determine this is whether the thing will go into reverse with engine running and car at standstill. If it always crunches, you still have clutch drag. Remember to give the 'box internals a little time between depressing the clutch and trying to engage reverse - otherwise you could get a false impression due to the momentum of the box internals keeping them spinning for a short while, even after the clutch clears.

HTH

Wi
Wilf