Hello all, figured I'd update since a few of you replied with valuable information! I ended up draining some fluid from the rearend and the tranny and adding lucas oil; this did help quiet it down a little bit. Not much, but seems to take the edge off it a little. I can definitely distinguish between the motor/tranny noise and after driving a few times it sounds more natural and like everything is in order. I'm just too used to the 70/80 era vehicles where there's no straight cut teeth besides reverse and things are a little quieter. Teeth all looked fine with no visible chips or marks. Another problem I may be having is the motor is actually from a 1955 235 and the tranny is a 3 speed. So all that combined with the 2 speed rear end is probably my culprit. Having another problem with the rear axle, but I'll make another thread for that! Thanks for all of your replies.