Huge Tranny Problem

sounds like bad synchros

I would say it IS bad synchros, and the only way to get that fixed is to rebuild the darn thing. I have heard its not too hard to do. Try doing a search for a T5 rebuild. GL. BTW, the synchros are what slows/speeds up/down the gears and collar so that they can mate without grinding. When the synchros are bad, the gears don't match speeds, so they grind. check out how things work for more info.

The second gear synco has gone over to the enemy camp...

I don't know how you feel about the DYI thing when it comes to gears, some people don't like the idea of working on transmissions. If the DYI transmission fix idea isn't something that you would rather leave to someone else, here are some resources:

See http://www.ttcautomotive.com/English/onlineorder/product.asp to download a FREE service manual for T5 or Tremec 3550
You will need the Adobe Acrobat viewer which is also a free download – http://www.adobe.com/products/acrobat/readstep2.html

See http://www.hanlonmotorsports.com/ or http://www.ddperformance.com/index2.htm for parts

A T5 rebuild kit with syncros, bearings and other small parts costs about $160. It does not include any gears or shafts.

http://cartapes.com also has a video on how to rebuild your T5 or Tremec. It costs less than $20, and is worth every penny of it.

I did a Tremec 3550 rebuild, and it wasn't that difficult. The video was an immense help, and I would recommend viewing it. At $20, it will give you an opportunity to look and decide for yourself if you think that it is something you want to try to do.

You will also need a magnetic base and dial indicator to measure the endplay ($20-$40). See http://www.mscdirect.com/PDF.process?pdf=1312&Keyword=Y