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Quick update:
Went ahead and got the transmission replaced. Found a used one with 36k miles on it for $900 bucks delivered to the shop. Ended up going with the Valeo Single Mass conversion kit (includes clutch + flywheel). Upgraded the transmission mounts to the M3 mounts as well.
While I had it in the shop also had them do: Oil pan gasket, Oil filter housing gasket, accessory belt, M3 control arms in the front along with new tie rods and sway bar end links, coolant flush, power steering flush, brake flush.
Before all this I had replaced the pads and rotors with Stop Tech cross drilled rotors and picked up a OEM Performance Exhaust. Feels like a brand new car! Transmission mounts and M3 control arms made a huge difference in the feel of the car. A little bit of chatter with the Valeo kit but still breaking everything in.
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