Sounds like the throw out bearing is gone, going from your description.
Its always rotating (with exception of the series 1 which has the spring return to release the bearing) and if the bearing starts to seize it can make a lot of noise when depressed. If it gets bad enough the tight bearing will even start to spin on the clutch fingers. That can damage the pressure plate fingers as well. You shouldn't wait to long in changing it.
You can try this to determine for sure. Warm it up and raise the car so you can get under it. If you slide the clutch fork dust cover back and run the engine. Get someone to lightly press the clutch pedal you will hear is better.
Also push the clutch fork into the slave cylinder to release the bearing completly and you should hear it change in pitch (check the clutch master has enough room for the fluid). You can then play with the clutch fork pushing the bearing onto the pressure plate to hear what the bearing is doing. If its only a year old you will hear it contact the pressure plate, but its bearly noticable with the engine noise.
Chas
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