Thanks for the info. I checked my notes, and I haven't changed the tranny fluid yet. Although I had a shop due the spline lube and he may have changed the tranny fluid. It's real clean. But it can't hurt to try new fluid.
But since it is limited to 2nd gear, I do think it is something mechanical. Although I haven't totally ruled out the kickstand vibrating and hitting the muffler. But I would think that would happen in several gears unless it is some unique harmonic.
Not sure how that all is supposed to look, but the tolerances are real tight between the muffler, kickstand, clutch cable. Plus, my muffler can be shifted a little even though the clamp is tightened down. Not sure if this is normal.
Now that I can replicate the noise, I'm hoping it is just matter of time before I can find a definitive source.