This is the result of the second transmission failure (March 2009) in my 1985 Saab 900 SPG. This transmission was from 1986 and I was running Honda MTF in it at the time. It was making a griding noise when the gearbox was in neutral with the clutch engaged, but the pinion bearing wasn't whining. I did a quick boost while going up a hill in 3rd gear when it broke. It looks like the layshaft bearing collapsed which caused the gears to spread appart and 3rd gear shreaded.