that is correct. Basically as I look at it, if I was going to fix this I would have to replace everything but the case, rails and forks. There are going to be pits in the gears, which will howl when in gear and you will have pits on the cluster shaft etc. It can be done, but the cost to do it right will be high

Yes...true true. Figured when I pull all the gears and bearings off to replace all the syncros and such I will do a thorough cleaning on everything and make sure there are no filings hiding anywhere. But yes, inside the gear case, it looks like a gear literally exploded in there.....even smells burnt :/

But am going to call around and see what I can get a replacement ax-15 for from some local yards....