I have literally watched the spring loaded pin going right into its notches for each gear with oil pan removed. Linkage is working fine.

I have managed to connect scanner to ecm finally. Just had some settings wrong. Nothing there except glow plug.

I have tried all of the solenoids inside gearbox using scanner with my ear on the oilpan. All of them made audible click except "solenoid 2" I have tested all solenoids when I had valvebody outside gearbox so this can possibly be an problem either in the wiring or TCM. Can this cause my geabox not to go into reverse ?

I am unsure as I have tried it without electrical connection what so ever and it was doing completelly same thing.

I will probably slap used transmission in it. If it doesnt fix it I am breaking that hooptie for parts