The noise actually happens when the clutch is pressed and you're shifing into the gear. As you remove your foot off the clutch, the noise dissapears. I've also had it when coming to a stop and my foot is on the clutch and break when in 2nd. Awful noise that people can hear as I got a lot of looks when it was doing it.
Thanks for the info on the Transmission Fix Oil, we used a similar stuff called Molly Slip when the gearbox went on which does the same thing and does work but it seems the noise is actually the Main Bearing and Induction Bearing breaking up in the gearbox. I got it to my mechanic yesterday after a rough, noisy drive for him to hear it and he confirmed it was the bearings breaking due to it being a faulty/dodgy gearbox. I've now had to go somewhere else to get another gearbox (my mechanic reccommended this place) which is on its way as we speak.
Word to the wise, when buying parts off Breakerlink, check and double check the breakers you are buying from as I got hit with a dodgy one that sent me 2 faulty gearboxes.