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Could still be bad syncros - especially true if it always grinds.
Some stuff that I would try out first:
- When was the last time you flushed/bleed the brake master cylinder and slave cylinder?
If it has been more than two years, I would try flushing out all the old fluid with fresh fluid. Just takes regular DOT 3 brake fluid. Don't use some brake fluid that has been sitting around for years, go "buy" a fresh bottle.
- When was the last time you drained and refilled the transaxle and what fluid did you use / is currently in there?
There is still a debate between GL-4 and GL-5 fluids and how they affect yellow metals (brass). GL-5 fluid is reputed to be harder on syncros, as they say the fluid will eventually eat the metal. Not 100% sure if this is the case, but since there are GL-4 fluids out there - there is no reason not to jump to the newer GL-5 spec. Now there are advanced GL-5 fluids that "supposed" to be brass friendly. If you haven't already replaced the transaxle fluid - I'd go ahead and do it, takes about two quarts or so - highly recommend Redline MT-90, a GL-4, 75W90 gear oil.
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2002 Corolla S, 1.8L 1ZZ-FE VVT-i
2003 Matrix XRS, 1.8L 2ZZ-GE, VVTL-i (RIP)
2009 Matrix XRS, 2.4L 2AZ-FE VVT-i
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