Motorcycle Repair: 2002 Honda Shadow ACE grinds then dies, honda shadow ace, dirty garage

Question
I recently acquired a VT750 Shadow Ace that had been sitting in a dirty garage without starting for about 3 years.  After a few days of tinkering with it and cleaning the carbs, I started it.  I drove it around the block a couple of times and put it in the garage.  

This morning I stepped out to the garage and could smell gasoline.  I went to start the bike and heard a loud clunk.  Now all it does is make a grinding noise while it turns before dying again.  Is the engine blown?  It does have oil and coolant in it.

Answer
because you were able to get it started and running for a brief period after sitting so long, the only thing I can think of that would be causing this problem would be that the starter motor is damaged not engaging or disengaging all the way. try push starting it a few times, if it still occurs tell me and we will figure this out, but it really sounds like its the starter motor at the moment.