727 trouble ?

You know this is really off base here but could it just be a broken motor mount??? A broken motor mount will let the engine rise up on the drivers side and allow the fan to hit the shroud. That could be the grinding noise. I'd have a budy stand to the side with the hood open and you put it in drive and torque it up with the brakes locked on and your bud should be able to see if the engine tilts upward.