[southernrock]

Found the problem. Removed the front bearing retainer and after looking closer (under all the grime) discovered that the sleeve the release bearing rides on had previously been broken off and welded back on. The scraping noise was coming from a spot of weld which was slightly contacting the input shaft. The leak was there because the oil seal wasn't, It was actually missing. Went by the local gm dealership and picked up a new bearing retainer which included the seal.