HELP please! Grinding noise
 

I am concerned about my transmission.

I recently starting hearing this grinding noise - I mean grinding noise, this isn't a whine - coming from the front of my car. It only occurs right before the car is about to shift from 1st to 2nd. It does not occur when in nuetral and the less gas I use during shifting the less I hear this noise.
The car doesn't make this noise in neutral upon revving.

I checked the fluid and it was low when hot and I checked again when the engine was cold and it was at the cold mark.

Any ideas? Thank you for your help.

Nevermind. Its the exhaust.