Most likely, the dogs are worn out on 2nd gear. 2nd gear in the SM465 (117 mm RPO M20) trans is not a sliding gear -it's stationary. Engagement is done by the shift collar locking on to the little steel spurs on the end of the gear. Once they get worn - usually at an angle - they push them selves out of the shift collar. 2nd gear usually gets the most wear in any 4 speed.
If you look closely at them, and they are worn, you can assume the part of the shift-collar that slides over them when using 2nd gear - is just as worn.
As already mentioned, other things can cause it also - but dog/spur wear is common in 2nd gear.
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Today's Featured Article - What Oil Should I Use? - by Francis Robinson. I keep seein this question pop up over and over again in discussion groups all over the web. As with many things there are often several right answers and a few wrong ones. Some purist I'm sure will disagree to no end with what I will tell you but most of us out here in the real world don't really care do we ? Some of them only bring their noses down out of the air long enough to look down them anyway. If you are like me you are only doing this old tractor stuff because you enjoy it. You
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