Well just talked to my nephew and I guess this could have been VERY serious if I hadn't dealt with it. He said the metal shavings were the result of the back of the engine getting hit and shaved off. He said when he separated the tranny from the engine it kind of "sprung" apart as if it wasn't mated or paired with the engine side correctly like it should have been. He said the part of the engine that was shaved off on the backside shouldn't affect anything mechanical and would be very expensive to fix and hopefully won't create any problems down the road.

 

sorry to hear that .. bummer