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You don't need a gearbox, you've a clutch release release bearing failing.
New clutch kit will sort it.
 

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The noise is there when driving along but dissappears when i put the clutch down ??
I have had this problem before, when you are driving in gear, it makes squelling noise, but when you put your clutch down it goes away. The mechanic said I need a new gearbox or reconditioned it cause it will just come back as it is a "Normal 307 Fault" so they reconditioned it and got the car 3 days after. Everything went ok until now, already did 12k miles since it got changed.

Just try to go some mechanic around they would know someone who could reconditioned it.

P.S I paid 350 all included.
 

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I have had this problem before, when you are driving in gear, it makes squelling noise, but when you put your clutch down it goes away. The mechanic said I need a new gearbox or reconditioned it cause it will just come back as it is a "Normal 307 Fault" so they reconditioned it and got the car 3 days after. Everything went ok until now, already did 12k miles since it got changed.

Just try to go some mechanic around they would know someone who could reconditioned it.

P.S I paid 350 all included.
;)

As David say`s , read below -

http://www.peugeotforums.com/forums/maintenance-9/screeching-clutch-7296/
 
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