Yes I can down shift without any grinding.
I'll check #1 and #2. BTW embarrassed to ask where is the pilot bearing on this transaxil?
As first gear does pops out violently does that give you an insight as to the problem?
The pilot bearing is at the end of the crankshaft. Part of the flywheel assembly. You have to pull the trans and clutch assembly to get to it. The pilot bearing and trans input shaft are repair parts, but given that your trans/clutch otherwise behave normally, this seems unlikely to be a cause of the problem.
What MarkH said.
Still, check all bolts and the motor mounts to be sure torque on the drivetrain isn't pulling it out of gear. And, since you have an after-market shifter, you want to be certain the linkage/cables are properly adjusted.
Maybe somebody can recommend a GT tech in the Bay Area, but I'd consider a drive down the coast to drop the car with Kendall for evaluation.
Good luck!
Just wanted to give you an update. The transaxle has been rebuilt and its back home. Again Mark was correct. First gear was the problem. The gear was OK but the synchro on the gear was thrashed. We sourced a new gear. The cause was the transaxle was not properly installed from the factory causing first synchro to prematurely wear. Kyle Millen was in charge of the project and did a great job.
I've had trouble with 1st gear since new. It ALWAYS 'crunches' into 1st until the transmission is fully up to running temp... which takes a while. My Ford wrench said it's normal for a Ricardo box... but I think he's wrong. No one would build it that way intentionally.
I just baby it until warmed up but am fearful when it needs repair. I understand there are no parts available.
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Ditto, my car is hard going into 2nd when cold, but after a minute or so, it works more smoothly. That is very common in our cars. With the torque of that wonderful engine, I just shift from 1st to 3rd for the first minute or two. Not being able to use 1st would be a lot more inconvenient.