Grinding could also be the differential in the transmission if it's at 6k rpm. Also, if you have the turbo's 9k (7k redline) rpm tachometer, then you need to change that out for the regular 8k rpm tach (6250rpm redline).
AFAIK, the engine shouldn't make a grinding sound, but a knocking sound when the bearings have too much play and the rods are just slopping around.
Check your oil and change out your gear oil in the transmission. If there are any metal flakes in the gear oil, then your tranny is on its way out. If there are any metal flakes in your motor oil, then your rod bearings are shot and you're about to throw a rod and/or damage the crankshaft.