Ranger, Is it the Small Pinion that is worn?? If So then check the Spur gear on the tranny. I was killing 17t pinions about every 6th tank of fuel. So I looked very carefullt at the setup(gear Meash Ect..) And noticed the spur gear the meshs with the smaller pinion was a bit out of round. When I finally got the screws that holds the spur gear on the oneway I found there is a bit of slop in the mating recess on the gear. I retighten it acouple times a check it. After about three attempts the spur gear seems to be round again(Centered On The Oneway). Now I dont go thru Pinions as fast..But with the torque and power this engine puts out you will wear out that pinion. The engine is so powerful that it tries to destroy the rest of the truck. CEn Has done a good job of Engineering out the week spots, but the pinions are still soft(A much needed improvement)

As Far as the Shifting goes Have you tried to lock down the Second Gear Clutch to see if it still shifts??? And does it launch hard or does it seem to bog or launch soft??(Second Gear Might Already Be Engaged or Engaging Before It Should And All you Feel And Hear Is Thrid)

Dont worry we'll get it sorted out.....

Have Fun!!!!