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Some quick answers for you:
YES - Engine and transmission should come out to repair the clutch. It's possible to do so without removing both, but it is much easier to remove both and clean up a bunch of stuff while you're in there. Grinding on quick shifts probably indicates some other issues with the gearbox, not necessarily the clutch.
A good PPI is essential to fully understand what is going on with this car. Don't scrimp on this if you're serious about the car. It's worth the $3-400 price to understand what the real condition is.
As soon as you have visible rust, you have lots of invisible rust elsewhere. (A PPI will help find that.)
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