I am pretty sure that this is a transmission problem and not the drive shaft, but i guess it could be anything.

Update

There is oil at the TCM.


Is there anything else i can do other than replacing parts at this time?

Could I run the car without the TCM hooked up to see if the grinding goes away at idle?

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1998 E320 150,000
1980 300SD 240,000
1965 190D 79,000