Make sure the reverse lock hook moves freely. Also, a big problem with that type of shift was the spline connection piece between the upper and lower shift shafts. They would wear out pretty badly. That would make it so that the upper detents near the shift handle and the detents on the shift cam in the gear case didn’t have coinciding positions. You can make a new connector with one from a fairly modern Merc, with a little lathe work or grinding.
Long live American manufacturing!