<VV> troubleshooting?

[Kinzelman, Andy]

Guys,
A friend has a strange problem.  The car was making some strange sounds he thought was a loose flywheel.  I did not get to hear the sounds before he had most everything disconnected to drop the engine.  I helped him change to a bolted flywheel; then begin reassembly.  He finished hooking everything up, and the car made the same sounds.  According to him the sounds are intermittent.
What I have heard is when in neutral and the clutch pedal depressed the car sounds normal.  Releasing the clutch pedal makes it sound as if two gears are barely engaged, and the car wants to creep forward.  Put in reverse and moving, the car judders as is something is hanging up.
My neighbor thinks it is an external shift linkage issue.  I don't, because I can't get it to stop the initial sound.  I have not had the time to disconnect the linkage to check.
My fear is it is a transmission failure.
Any thoughts?
Thanks,
Andy K.
Wisconsin.