Yeah they are metal. Also, the metal shavings from the grinded gears mixed with the grease and looks like silver grease. So that's probably why your lhs thought that the gears were plastic and thought that it was only silver grease.
My only solution is using the front diff/tranny and just running it 2wd.....[&o] But that's my last resort and I'm scared that the front diff/tranny would get grinded up also.

Thanks