While I don't have any information concerning your swap, heres a little different take on your problem.

The NV3500 is a great transmission for some aplications and I never found them very difficult to work on. It is the transmission of "CHOICE" for some 4x4 applications and if they will take that then they sure are far from a " crap box". Over the last few years I have done seven change overs on Early Bronco's using the NV3500 to replace a host of so called bullet proof transmissions like the SM465 4 speed and the ZO5 speeds. In each and every case the NV3500 has proven to be the superior choice.

I don't know why anyone told you the clutch was going to be a $1,000 on your S10 NV 3500 combination. The clutch alone is $112.87 and then you should swap out the throw out bearing and pilot bushing but parts alone shouldn't be over about $250.00 or so. Replacing the clutch itself is about a half a day job even for a novice maybe a day.

Now that won't address your bearing noise but neither was the $1,000 clutch job.

Just my opinion but I would much prefer the NV3500.

Roland