RE: major savage problems!!!!!
The spitting fuel problem could be stripped threads in the glow plug hole. Also, you HAVE to use the copper washer at the glow plug and it must be cupped side down, like this ^.
The 3rd gear thing has me confused too. It would seem to me that if it were stuck "in" 3rd that the truck would be a dog off the line, real poor take off because of the high gearing. If the engine is screaming then it sounds more like it's caught between gears or somehing. I don't know enough about that transmission to help more.
Good luck.
Oh, and welcome to the board.