Trans problem. Need help.

[phoebus]

I have no idea what is wrong with my tranny. I put it up on jack stands and working backwards the wheels turn by hand. The driveshaft turns the wheels by hand. Put it in gear and you can still turn the driveshaft by hand. The clutch pedal feels normal. It feels as if the clutch pedal is engaged, but it isn't.
The car is a 1991 318is.

[jlevie]

That is probably a bad clutch. You will know for sure as soon as you remove the transmission.

[phoebus]

Everything is fairly new in there. I replaced it about 4000 miles ago.