Found a 79 5-speed transmission locally. I asked the guy to check a few things for me because he doesn't know the history of the tranny. Here is what he sent me: 
  
I was able to pull the  fill and drain plugs.  Using a flashlight and rotating the input shaft  in several gears, I did not see any damage or excessive wear.  There was  some small metal shards on the magnetic plug and one small metal piece.       I have rotated the input shaft in all gears by hand with no issues. 
   Thanks 
  
What do you guys think? He wants $225 
Should I just rebuild my 5 speed?