JD 40 noise in trans?

Need help from you JD guys with me being only an IH and Farmall owner. I have a relative with a 1954 JD 40 that I help them with when they have problems. This spring they started it up, been sitting since last fall, and it has a grinding noise only when in gear and moving. Does it in all gears but no noise when in neutral. They said it wasn't as loud last fall but its really loud now. I haven't had a chance to get over to their place and listen to it so I wanted to check in with you guys and see what you thought it could be. I'm thinking/ guessing a bearing on the output shaft side somewere because only does it in gear?? Maybe a bearing on the axle?? Any input/ ideas on things to check when I get over there to help narrow it down would be helpful.
Thanks
Ryan in northern michigan
 
Should add that I did the clutch about 6-7 years ago but I doubt it has anything to do with it being it only does it in gear and moving and not when in neutral.
 

They shouldn't hope the sound is going to get quieter or go away with time ? The damage maybe major now after continued operating with a grinding sound . The JD web site has the parts book. The nice folks at 1-800-522-7448 have the real JD service manual and operator's manuals on CD and hard copy . There are clearances in the clutch and transmission that have to be set up to spec.
 

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