I doubt it's the clutch....you would have problems in all gears if it were.
Check the classifieds...i just saw 2 different 3550's for $1350...and $1100
My guess is it's toast.
Synchro's and gears probably worn...usually not worth rebuilding. Gonna cost about $800 when it's all said and done.
Brand-new t-5 from D&D is $799
------------------
4.10's,long tubes & 75 shot...Goes 12.50's
Check it out at
http://www.burnouts.webprovider.com