Re: I inherrited a motor and I am a noob. Your help is needed.
There was no electric shift in 1960. wackostu, your symptoms are classic and well known. You have a totally worn out clutch dog, and most likely forward gear also. Allowing it to get that bad often beats the linkage to death, so yes you could have problems there too. Only an inspection can tell.
A new 312054 clutch dog is $125.
A new 377870 forward gear is $479
A new 307074 reverse gear is $180
Note: a reverse gear can be used as a forward gear by swapping the bushings.
If installing a new 312054 dog, it is highly suggested (but not required) that you drill the prop shaft for the detents that work with the new dog. It makes the dog snap into position, reducing wear. But don't think you can drill it yourself unless you are experienced in drilling stainless steel. Have a machinist do it on a Bridgeport. He will know what that means.
Now you know...........