My son's '87 Rabbit had a bad starter motor. The pinion was sticky and the starter motor took too long to disengage the ring gear on the flywheel, evidenced by a loud screech upon pinion disengagement. The removed starter had a worn pinion bushing, resulting in a lot of slop. My son installed a rebuilt starter motor, but there's still a weird noise. At first, I thought it was a grinding noise upon pinion engagement, but then it sounded more like a grinding upon pinion disengagement. I am wondering if the old starter had maybe damaged the ring gear on the flywheel, causing the noise with the new starter. I guess we will have to remove the starter and check the ring gear for damage to be sure.