So I finally cut it in half with a air grinder. The cogged gear section that the sliding clutch rides on was completely welded to it's opposing gear. The roller bearings inside were completely untouched, dry even.
So I cut the pieces in half, and turned down both sides down in a lathe. Just enough to clean up the mess. Put it back together and seen that there was no drag or anything between the input and the intermediate shaft. Tossed the bearings back in and bolted the case halves together and it works. Dunno wtf happened but it's smooth now. No grinding, both cases shift in and out of every gear perfect.
Drove it about a mile or so, shifting through all the gears randomly, worked perfectly fine. Both cases were cool to the touch, and went in and out smooth as silk. Stupid, but I'll take it.