replaced starter - strange noise- help?

[donberry]

1993 525i. Starter was bad. I replaced the starter. Hooked it all back up, cranked her up and it makes a strange sound......it is coming from the starter/flywheel area. Almost sounds like the starter did not disengage. Took starter out and checked it out.....seemed to be working fine. I then checked the voltages on the wires going to the solenoid.....all was well. I even hooked up the starter, disengaged fuel pump and cranked it over.......the clutch in the starter works fine.
Still makes the noise. Sounds like aluminium flywheel is rubbing on something. I checked flywheel and it looks ok, can not really tell anything rubbing. I also checked teeth on starter....looks fine.
I am at a loss. I have torn it down over 7 times and am frustrated. Seems to run fine but I just do not trust that noise. It is a very noticeable noise. At first I almost thought it was valves, but using a long screwdriver, I am almost positive it is coming from the starter area.
Any suggestions ?
Starter seems to be working fine. Ignition seems to be working as there is only 12 volts at the one wire when you turn it over.......I hae no idea what it could be......help
don4@charter.net

I was going to sell the car....going to ask 4900.....thinking now just trying to sell it for 3900 as I am tired of messing with it

[632 Regal]

double check the starter part number to the one on the online etk, might not be an exact replacement?