Blown motor, or transmission issue?
 

I was driving down the freeway the other night in my 87 turbo when I downshifted from 5th to 4th and hurt this extremely terrible noise. I pushed the clutch in and the motor immediately died. I let the clutch out and it re-engaged, the noise continued but the motor was on. Anytime I pushed the clutch in and did not give it gas the motor with instantly die.

I coasted off the freeway to a parking lot and let it sit. Went to start it back up and it wouldn't turn over and was struggling REALLY hard and was turning over slow. I held the gas down all the way and turned it over for about 45 seconds and it started up making the noise below. It now starts easier but there's no way I'm driving it like this.

More info. The past 4 months I've had squeaking coming from what I think is the transmission and it's been getting progressively harder to shift. There's been some times where it will not go into first gear at all and you have to really force it. Even when the engine is off and it's in neutral there are times where you have to really force it into gear. Is it possible something grenaded in the transmission?

I have a link to the noise below.

https://photos.app.goo.gl/ux3sQgKpxnDDVxTy9

I don't think its anything related to the engine. I would lean more on either something in the transmission or something with the clutch/flywheel has come apart. Really impossible to diagnose from just the video. With the engine having difficulty running and the shifting issue I lean toward the common item..clutch area. It's possible a bearing for the input shaft has gone. You could try peeking in thru one of the inspection holes in the bell-housing, or pull the transmission out and see what you can see. You can pick up an inspection camera for not very much and that could help get a view inside the bell -housing and save you pulling it all apart.