I recently picked up a 88 Cherokee 4.0l 4x4 2 Door with the 5 speed transmission, and yes it is the terrible Peugeot BA 10/5 tranny that i have heard nothing but bad things about after doing some research. When i bought the Cherokee the transmission was not installed and hanging by one bolt, as the owner told me he put a new clutch in but didn't have time or money to put into it anymore, so i bought it. First things first was getting the transmission installed back into the Cherokee, which proved harder than i first thought. After fighting the transmission for a few days, we decided something wasn't lining up right and pulled the tranny off, and found the pressure plate was slightly misaligned. So after using a clutch alignment tool and reinstalling the pressure plate in the right spot, and torquing down all bolts to spec, we put a little grease on the end of the tranny shaft, got it into position, and it slid right into place, mounting up evenly all the way around the bell housing. I had to find some missing bolts for the tranny, as i was missing some from the other owner, and finally got all the right bolts and nuts i needed to finish the install, making sure all were grade 8 bolts. Now, i have the tranny installed and bolted up, shifter is installed, hydraulic line set up and bled for clutch, good pressure on the clutch. So now i know i need to put the cross member support back on for the tranny, and reinstall my drive lines and i should be good to go. But i wanted to start it first to hear the motor fire up and hear how it runs as i had not yet heard the motor, so i hooked up some jumper cables and started it up.

At first i thought i had an engine knock, and check my oil levels oil was a little low. Added oil and some MMO to try and get rid of knock, started it up again today and it still had a bad knocking noise. I followed the noise down to the bell-housing/tranny area of the jeep and heard a bad ticking/knocking sound, not coming from the engine at all like i originally thought but something in the tranny/bellhouse area? Another thing i noticed is that when putting the clutch in the noise goes completely away and there is no knocking sound what so ever. I will post a video showing what i am describing, but i am just curious as to what anyone things could be causing it? I have heard maybe a loose flywheel? I am also wondering if since i don't have the cross member or drive lines on something is maybe slightly misaligned causing a bit of a knock? I know this is a long post its just a lot of information to get out, and i am still somewhat new to this type of stuff so i want to make sure i get all the details in there. Any ideas or suggestions would be greatly appreciated!