Grinding noise only at low speeds

Also, the noise stops at speeds higher than about 40. We next thought low power steering fluid, but it doesn't have a reservoir; the wheel bearings, but it's not only when turning and doesn't get louder with speed. Now we're lost. We were also told the cv joint had small minor leak, and the mechanic who inspected it recommended a transmission flush.

I don't think that sounds quite like my problem, sorry. Everything for the transmission checks out fine, just the recommended flush. The way it is, I would SWEAR the brakes or callipers aren't releasing, more a rubbing sound than a grinding. I apologize for the poor word choice. But everyone one says the brakes are fine. Maybe power steering? I can feel the vibrations through the steering wheel. I'm not saying that what you said is wrong, just doesn't quite fit I guess. But I thank you and any further suggestions would be greatly appreciated :)

The noise decreases when in neutral, but is still there, and definately sounds like something rubbing.

Nope, purrs like a kitten. The noise also stops after about 20 minutes of driving at higher speeds, even when I drop down to 25 or less, where I'd normally hear the sound. But if the car sits long enough to cool, the noise is back. Also, when I'm going in reverse, there's no noise except if I turn the wheels sharply, like when parking. Say it is something with the transmission, how worried should I be driving it?