Clutch Grinding

From what you wrote I am guessing that the transmission is grinding because the clutch is not releasing cleanly? Or is it the clutch that is making noise? Either way, I always adjust my clutch by the air gap between the t/o bearing and the pressure plate fingers, a 1/4" or less. I installed a new B&B clutch and just adjusted the pedal free play and smoked the t/o bearing and damaged the pressure plate fingers. The free play felt good but there was no gap between the bearing and fingers.