I used to work on these early to mid 70’s, so my knowledge is pretty rusty. Off the top of my head I can’t offer good suggestions especially without hearing it.
First have you checked the fluid level, this should be done on level ground with the engine running and warmed up. The fluid should be transparent with a red tint. There should not be any metallic sparkle under sun or bright light. Brown is not good and burnt smell is bad.
Other than the noise, how does the transmission drive? Are shifts sloppy?
Rebuild cost could depend on what it needs. If just seals, bushings and clutch plates, it shouldn’t be too bad. If hard parts like planetary gears, clutch drums, and pump need replacing it gets more expensive. Sometimes it’s cheaper to find a decent core to use for parts.
Honestly I can’t think what would cause a grinding noise, but a pressure regulator can make a noise that could be interpreted as grinding.
Switching to a different transmission will definitely be more work and expense. The cost of a different drive shaft, cross member, possible throttle linkage or electronic shift controls all add up. If you are looking for a trans with overdrive that can handling high horsepower that may help justify the extra cost and labor.