Tell me what's wrong in that picture..........
Here's the reason Jon's GLi transaxle was making that horrendous noise. All six of the flywheel to crank bolts were loose, and I mean REALLY loose. One was bent so bad I had to straighten it with an air hammer just to get it to release from the recess pocket. The crank PTO end was so hammered from the loose flywheel that it took near two hours for Pete and I to remove the flywheel from the motor once the bolts were out due to a large stress riser on the hub-centric. It will need to be machined down for a new FW to fit properly.
The clutch and flywheel are completely toast. The one hole in the crank PTO that had the bent bolt has terrible threads and is going to require some massaging to get back to normal.
This is what happens when you don't use a torque wrench and thread locker on these bolts. Also a big reason why you don't reuse flywheel fasteners....the threads stretch.
Some more pics of the near-catastrophic failure in my gallery....