Jim:

Thanks for the thoughts. I was banking on the idea that the starter itself was responsible for the intermittant problem because it was spinning before engaging. When the shop examined the starter they noticed that problem along with the brushes getting tired. They also noticed the shavings.
If my ring gear has some damage I'm going to be bummed because swapping that starter once was enough for a lifetime for me. My little finger on my right hand isn't typing so well right now. Heavy bugger!
Put it back together last night and started it some 6x today. So far so good but if I hear that sound again.....

Don

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