I will order the new bushing (part 42H 1214) tomorrow.

What needs to be lifted ?... "The reverse lockout requires lifting"... do I need to lift the motor ? Apologies, I'm confused on that one... but, I am good at following directions. EDIT 4/26/15... I used a much smaller bolt, wrapped some tape around it to temporarily hold the shift rod in place. I used a small alan head wrench and was able to pull the trans-shift-rod back a bit (towards the back) and then turn it, I pushed the coupling back into position on the transmission tail shaft and now the holes line up and I can put the roll-pin thru, one I have the new bushing... just used a temporary work around to help me understand how the roll pin holes are lined up / fitted.

I have never removed the shifter assembly.

The shifter assembly is a large greasy mess... really bad... so, probably this is the better time to remove it, clean it and renew the bushing you mentioned. I'm not sure how to remove the shift assembly. I'll look in the book, there are probably some bolts up top under the shift boot.

I might need to jack the car up a little higher and raise the jack stands... .. I don't fit under the car as well as I used to.

Let me know on the lifting question. Thank-you, Tom

You need that new bushing. You need to loosen or maybe even completely remove the header to get the bolt in place. The reverse lockout requires lifting to move the selector to the right of where third and fourth are accessed, and this is where it is easiest to insert and remove the roll pin.

maybe now is the time to completely remove the shifter assembly and sort it out. There is a bushing at the front of the housing, and it wears along with the rod that passes through it. You can find a bushing at a hardware store, and you can remove the rod and swap it end for end so that the worn portion is now forward towards the engine. That is enough to transform the shift assembly.  You do need to take great care in drifting out the roll pin that holds the main shift rod to the cast portion that the shift lever drops into, but otherwise this is a simple job. 

I have 2 questions/challenges.

Looking at the earlier picture.

1) There is a 5/16 bolt, about 2 inches long that goes in above the pin. I am unable to have enough clearance to put this bolt in. The exhaust header is in the way. Is there a technique/trick to getting this bolt in or... do I need to loosen the header off the exhaust studs ? Edit.. I think I found the answer..there is a rubber bushing around a small shaft the bolt slides thru..the shaft can be slide in/out..so, by sliding to one side, allows room to get the bolt into place. I noticed the rubber is badly deteriorated (damaged)...it is probably best to order a new one.

2) When I slide the shift mechanism over the shaft at the back of the transmission, I am unable to get the holes to line up to put the pin thru... I am guessing this may be because of the above 5/16 bolt is not in place, therefor I can not change the position of the shifter in the cab.

Please advise, thank-you.