Transmission/New Clutch problem. Help!

[Unregistered]

Don't know if I will explain this correctly, but any suggestions appreciated.

My mechanic went to change my clutch this week. He took it all apart, had the flywheel turned and put in the new parts, pilot bearing, clutch disc, pressure plate, etc., put it all back together and there is a problem. Seems that the transmission shaft seizes and the car apparently feel like it is in gear, even in Neutral. (Engine runs fine)
He thinks it that something on the engine side is putting pressure on the transmission shaft which is causing it to bind. Pilot bearing?? Clutch itself? He's worried that too much pressure on the shaft could have damaged the transmission as well perhaps causing the problem.

He's going to try to put parts back in one at a time until he finds out what is causing the problem. Hopefully, I'm not looking at a new flywheel or a transmission, both would be very expensive.

I'm at a loss, so any advice would be welcomed.

thanks,

Ed
'89 535i

[Martin in Bellevue]

To clarify something regarding the stock dual mass flywheel, it cannot be easily turned. There is a rubber elastomer to allow the surface to catch up to the pressure plate for a smoother action. It also weighs about 32 pounds.
I put a solid e28 m30 flywheel in my '89 535 when I replaced the clutch last year. The single mass, solid flywheels can be turned.
I'd guess that your pressure plate is binding, causing the no release. Maybe the release bearing wasn't seated on the little pedestals, causing a heavy clutch pedal?

Here's the earlier, e28 m30 flywheel:
http://www.bimmer.info/bmw/Martin5er/e28stock&15lber.jpg