Hi,
How did you get on? Your car did sound like mine and my mechanic has confirmed it is the drive pinion in the gearbox.
http://www.mini2.com/forum/first-gen...ml#post3756552
Looks like it will be quite expensive to fix [ive been quoted £800+VAT as well as a possible £70 + VAT for a new radiator, as he informed me that they sometimes leak after being taken out and put back in].
Forgot to add, get the Trading Standards number off the internet and ring them, they will give you a case number and let you know the exact process that needs to be followed. Basically, it's down to the garage to either
a) Fix the problem free of charge
b) Supply you with a vehicle on a like-for-like basis [which would mean exact colour, spec, mileage and condition]
c) Offer a full refund and they take the car back
Lee