49 geezer,
Excellent troubleshooting. You sure have been down this road before it appears. My only thought would be that with the clutch pedal completely depressed the wiggle room between flywheel and pressure place should be much much more than 1/32 to 1/16 of an inch. This is provided this is what you meant, or that I read it correctly.
Even with a hanging clutch, your three speed should be fully synchronized, even into first shouldn't it...why the grinding.
I wonder if the shift forks (side cover) are aligned correctly inside the transmission. The thing should attempt to go into gear without grinding if all is proper inside the transmission.
Stuart
