Yup, throw out bearing.
Lots of work for a 30 dollar part.
This is what mine sounded like about 2 days before it seized onto the tranny input shaft destroying itself along with the tranny.
"They say ignorance is bliss..... I don't know what the Fu*k that means but I'm pretty happy". Ricky Trailer Park Boys.
Current Mods....X-Brace, Stromung Cat Back Exhaust, 17/225/45 M3 Replicas, HotBits Adjustable Coil Overs, 40% LSD 3:91 Diff, E30 Gearbox, Boosted.