Lithium grease is 'real' grease, but it is too light for heavy use, IMHO. It will tend to wash off easily, if exposed to road spray. I generally use it only for door hinges and locks, hood hinges and hood latch release mechanisms and other protected areas. The only reason I recommended it in this instance is because it usually comes in spray cans with a long straw attachment for the nozzle which would make it easier to get into the area inside the bell housing. The best solution is the heavier moly based chassis type of grease, but the best way to apply it is before the trans is installed, but if you use a long narrow brush, like a painters brush, you can get into these areas if you are careful. And, yes, the clutch will start to slip if you get ANY grease on the friction disk let alone too much. It's like getting grease or oil on your brake pads, they tend to not function as desired.