I watched the linkage on top of the transmission and the shaft turns with the arm as it should. Also the gear indicator on the dashboard responds correctly as I shift to the different gears.
Yes, all the forward gears work fine. When I put it in reverse and push on the throttle it sounds like the motor is being loaded by the transmission.
I jacked up the front of it and ran it. Both wheels turn forward in all forward gears but when I put it in reverse it not only will not turn the wheels in reverse but locks up the wheels so you can't push it.
As I mentioned initially another interesting thing is that when I put it in neutral I still can't push it in reverse.
The transmission oil was clean but a little low so I added some to bring it up to the top of the hash marks and didn't make any difference in opperation.