I would rebuild the column shift 'control' on the steering column and replace all bushings and worn parts on the linkage and shift arms. The interlock mechanism on the side cover, the shift forks along with the 2nd and 3rd slider need to be carefully inspected. I've rebuilt a few T-85 Overdrives.

"FREE SAMPLE"

What gear oil are you using? Synthetics can cause sticking synchros and OD parts.
Edit: ooops missed the post about the oil.

Where was that barn at? I just wonder how far you had to go for that dash. Great story!

I'll do that, I all so have a spare 3 speed  that we've already used to salvage spare parts
Thanks,
Tim 
Hot n' Humid, Fl 33706

All I can say is I'm glad I didn't have a TBird back then. Every little thing requires removal of the engine.  We are getting pretty good at it.  The last time we had it out and back in six hours.  I'm getting too old for this....

Good Stories,
Racing on the back roads or from light to light......THEM WERE THE DAYS.
Had a '56 Fairlane, three on the tree, 312 w/tripower, Mallory w/Packed 440 wires and bald snow tires and a set of Thrush Mufflers that were too cool. Beat a lot of fords and Chebbies.
Someone with a '55 Pontiac 4 door that had a 348 cleaned my clock. He was in a different league.
Sold the '56 to a guy who smashed it up but for some reason he kept the dash . It stayed in his barn for over 50 + years.
 In August,of this year I went to that barn and pulled that dash out of the dust and cobwebs of over 50 years. (Just like on American Pickers)
Hauled it back to Florida and today it is hanging in my garage next to my 1956 Ford Crown Victoria.
A complete circle.........and I paid for the dash with a 6 pack of Bud Light .

My first Y-Block was a 57 Ford 312 I converted to three 2's and finally took out the automatic and changed it to stick. This was around 1960 so I used whatever transmission I could find. Often a 3 speed out of a 6 cylinder car. They were a couple bucks cheaper. I can't remember how many transmission I broke but it was at least over a dozen. I got real good at swapping them out. Went under with all the tools I needed and of course none of the bolts was super tight. I could break them by launching too hard or attempting to power shift. Most commonly I'd break the low and reverse cluster. I wish I had one of the old guys around to advise me on transmission choice back then. I could have saved a little money and embarrassment.

Y's guys rule!
Looking for McCullouch VS57 brackets and parts. Also looking for 28 Chrysler series 72 parts. And early Hemi parts.

MoonShadow, 292 w/McCulloch, 28 Chrysler Roadster, 354 Hemi)
Manchester, New Hampshire

In the early sixties, I street raced 1956-57 Fords.  They all had three speed transmissions.  I blew up so many of them the junk yard guy kept a few around just for me.  Later when I got some money, I bought a T85 and that was the end of my tranny problems.  I have never had a blown Ford three speed leave me on the side of the road.  They always got me home in some gear.

Your transmission needs to come out.  Pull it out and take it to someone who knows manual transmissions.  That transmission is a simple device.  It can be rebuilt in a day by someone knowledgeable about old things.  If the guy who rebuilds it is less than 50 years old, he probably isn't.

Found a supply outlet about 45 minutes from here in Bradenton, Florida ,
Two gallons for $23.00
Thanks for the help,
Tim
St Pete Beach
FL 33706

Got the transmission to work, Drove about 11 miles and it lockup again in 3rd gear.
Locked up after maybe 4 or 5 stops.  It was shifted thru all three gears.....1st, 2nd, 3rd with no problem. THEN, all of a sudden, it lock in 3rd. To get it out of 3rd with the engine,at idle, the clutch was dropped and it popped into neutral!!!!!
Going home, only 1st and 2nd were used and when possible, it went into overdrive.Reverse is no problem. Goes in and out with no lockup.
Seems that 3rd gear is the problem
What do you think ????
Thanks,
Tim
Wrinkle City, FL 33706