Re: 1985 sunbird will not go into gear
If you have a 400 drive behind a 3.8, that's the problem. You have 30 more HP than that drive was ever designed for. A 3.8 V6 should use an 800 series drive, not 400. Your lower unit may have failed.
But first, you need to take the cover off the shift converter at the rear of the engine there...Look in and see what the cables are doing.
A shift cable might have broken.
You can disconnect the cables inside the converter (there'a little diagram inside the housing.... you need to look on the back to see how the pawls work, or better yet get a manual) and try shifting it and seeing if the prop will lock F and R. if the cable works, but the drive doesn't, you need to take the lower unit off and look to see if the w/p shaft spline has failed in the outdrive, and drain the upper and lower units to look for metal chunks.
Is the engine overheating at all?