Linkage is good and in adjustment. The car is in gear (forward) in all positions of the PRNDL...yes...even park the car wants to move forward but the parking sprag is holding it from moving......and ideas?

sounds like a massive seal leak in the valve body.
Do not do more damage, do not drive Do not
even start the engine for that mater.....
time to drop the pan and see what the 'damage done'
is, for me no less than a tear down would be in order....
or off the on flat bed to your fav trans repairman.....

By the way, hows that fluid smell? burnt I bet......
if not--- your lucky, hope there is not little black bits in
it to, if neather, you may be really lucky........

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http://imageevent.com/jeffc
62 D100 225 3sp lwb
64 D100 A318 727pb custom lwb
66 D100 A318 4sp lwb
68 D100 B383 727 swb
65 Belveder A318 727 4d
65 Dart GT LA273 2bbl 904
73 Scamp 225 2bbl 4spOD
Old iron or no iron

Year, model, transmission?

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"When you find a big kettle of crazy, it's best not to stir it." - Pointy-haired Boss

1964 Valiant V200, 225/Pushbutton 904
BBD, CAI, HEI, LBP, AC, AM/FM/USB, EIEIO

H'mmm. I can think of a few potential causes for this what you're describing. sounds like the manual valve is stuck in a forward-drive position regardless of the position of the shift linkage. It could be as simple as the rooster comb ("manual lever" if you're looking in the FSM) having disengaged from the manual valve, so that no matter where the shift lever is, the manual valve is still in the D, 2, or 1 position. This could happen if the manual valve head or the rooster comb tang were broken or bent for some strange reason, and would be a fairly easy fix with replacement parts.

FSM also says "Drives in Neutral" can be caused by worn or faulty rear clutch, rear clutch dragging, or insufficient clutch plate clearance. The latter would normally not be a consideration in a used transmission, but if the clutch material has begun to degrade such that the space between the plates is filled with shredded clutch material, it can happen...

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一期一会
Too many people who were born on third base actually believe they've hit a triple.

1970 swinger, 225, 904.....I know the fluid was full but did not check its condition after this happened. It happened when I took the car down the block and back to my house for a test drive. That was the first real drive the car has had in at least 2 years that I know of (I just bought it in Sept 06). I have several extra valve bodies that I could try if there is a valve or something stuck.

MMMMM, if the fluid checks fine, then yes I would at least check
the valve body, drop it out and inspect, clean and swap if needed.
Setting for 2 years, a number of things could be very sticky inside and
could free up with use, however, damage can (could already)
be done, might even be lerking from a earlier owner.

Since you seem to have some backgound with a auto trans,
just dropping the pan will tell a lot....... at the very least
filling in some of the blanks.... line pressure test may
help too if your able to do that.

Still would not try to start the engine or drive till I knew more....
I prefer to use caution and avoid a rebuild if possable, but
Drive in P and N are not good signs, if the manule shift valve
is stuck part way (as per Dan) it can cause all kinds damage with the
trans fighting itself inside-- over heating clutchs and bands
if it is stuck part way between spots and bleading past
to other passages (and you would not always know for sure
till something failed)..... if your lucky it is stuck only in drive;
and if it is the rear band/clutch pack, well Dan said it.....

_________________
http://imageevent.com/jeffc
62 D100 225 3sp lwb
64 D100 A318 727pb custom lwb
66 D100 A318 4sp lwb
68 D100 B383 727 swb
65 Belveder A318 727 4d
65 Dart GT LA273 2bbl 904
73 Scamp 225 2bbl 4spOD
Old iron or no iron

I checked the fluid when I got home this evening and it has a definite burnt smell to it. Before I drove the car, I had to top off the trans with fluid. It needed two quarts. Yes, two quarts! I have no drip spots on my garage floor so who knows if it was driven long like this or it leaked out over the time it sat. I'll pull the pan in the next few weeks and see what it tells me.

Also, what is a FSM?

FSM = Factory Service Manual. And you will be instructed to get one if you don't have it already.

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The old white brick

Have plenty of those...figured out SM= service manual but not the "F"