Any Idea What's Making This Sound?

That doesn't sound right at all. Something must be rattling or loose or just plain broken
-Mark
 
Throwing some ideas outthere
What do you feel when you move the back gears alone? Disconnected of course.
Any debris stuck in the teeth? No likely
Is the small gear on the spindle moving?
Are the two 4 pulley units loose on their respective shafts? And how much play on the spindle one? The one on the countershaft should be solid. The one on the spindle runs on two bronze bushings when in back gear.
Are the spindle bearings adjusted properly?
 
My machine (101.27440) sounds just like that in back gear. I live in a "noisy" environment so don't pay much attention to it beyond making sure all the shafts are well lubricated. I will be watching for useful information.

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The back gear engagement on an Atlas 10" or early Atlas/Craftsman 12" is adjusted by shims between the headstock and the two bearing carriers or brackets. The two shim stacks are normally the same thickness,

Lubricant is grease on the gear teeth and SAE 20 oil on the bearings. There is an oil plug (screw) near the center if the sleeve connecting the two gears. Both there and in the spindle cone pulley should be oiled either daily or before using back gears. Same for the grease on the gear teeth.
 
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