I just recently repaired one of the aforementioned transmissions and obtained another one for my own use. This is the only
one I have dissembled in many years so it was a learning experience as well. The case is drilled as an offset to the centerline
of the shifter rail. The front part of the rod is separate from the shifter assembly. The transmission case is drilled to hold the
shift rod in place. The rod has a raised end portion that fits into a machined counter sunk area in the case. When installed,
the rod is held in place in a straight line to match the reverse cam assembly on the side cover. Clearly your case is damaged.
A new case would be unobtanium so possibly the case can be machined out and have a bushing made to correct the problem.
Note: The rod is completely different from the one used on the SM319 which is one piece and goes through a somewhat larger
hole in the case. They both perform the same function, however.
I'm going to take exception to Shane's post that " reverse does not activate the rod". It most certainly does.
The rod is a two function component. The cable operates a lever that engages and disengages the overdrive
components. The engagement fork also contains a spring loaded slide that disengages the sun gear when reverse
is selected. The cable is still engaged in the overdrive position at that point. The system was designed to employ
all the electrical components for it to function properly. Flipping switches and manipulating the cable is not
part of that system.
I hope this helps, Fred