grinding when giving gas

[davets]

just bought a 91 civic hatch, base model with the 1.5litre 4 spd manual

now the car runs great, has a new clutch, shifts great, starts etc but when in gear and applying gas there is a gut wrenching grinding type noise, it goes away slightly when cruising at highway speeds. also the same noise but in an intensified version happens when down shifting. when letting out the clutch it grinds and grinds until it is in the out position, but it doesnt do this when up shifting.

like i said before it shifts great, drives great- which lets me belive that its not a cv joint

my dad said it could possibly be the rack and pinion something or another in the differential, in which case he said i should just say screw it and save for a new tranny, preferrably a 5 speed- as i got the car for $350 and am going to use it soley for transportation i am looking for the cheapest answer

any help/ questions?