91integrals,
Oops, I guess I should have known that as my wife had a 1990 Integra a few years back...let's call that selective memory, I hated working on that thing.
Anyway, did you make sure the release shaft arm has the right amount of freeplay? Hmm, doesn't the adjusting nut just change the amount of freeplay?
What I also find interesting is that you mention it doesn't grind when it's cold. What sort of oil do you have in there?
Bogatyr