Shifter problems, rust [prev.] or even stick shift freezing?

[ARCHINSTL]

...the jammed up part must be the ball down the bottom.

I wonder - could the ball at the bottom have become so worn/distorted/out-of-round that (because the plastic bushing originally surrounding it has disappeared) it is now too large to fit up through the hole in the selector? Petros made a kinda-similar comment three years ago.
Frankly, that is all I can see now.
If the ATF does not work...
A suggestion, if there is a T4WD in a salvage yard nearby, is to remove that car's lever (which should pop out easily) and saw off yours, remove the lid, and see what the problem is.
While you are at the JY - I would really try to remove the selector itself, in case yours is kaput from the lever ball. I think it just unbolts - at least it looks like it - maybe others can weigh in on this? Look at TuffGong's second photo here: http://www.tercel4wd.com/forums/viewtop ... ter#p30853
Tom M.

[ARCHINSTL]

Reviving an old thread - gmeddy - did you ever get the lever out? What proved to be the cause of its recalcitrance?
Tom M.