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probably the switch
there is a multi position switch on the passenger side of the transmission. It is what controls the lights on the dash and it also sends a signal to the TCU to tell it what position the shift lever is in. I'm guessing that the switch is no good or the linkage to the switch has come undone. With a helper in the car jack it up, (jackstands), crawl under there and have them move the shift lever. You will see what I mean about the linkage and the switch.
Hope this helps,
Jay
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Speed Safely
Subaru, All We'll Drive
Black '92 LSl 270Kmi 5MT (W00t! for 1/4 million on 4/27/07)
Laguna Blue '94 L about 130Kmi (I think) for parts, in storage
previous: Green '92 LSl 253Kmi 5MT (sold to ron post moose adventure, sold to someone else)
previous: Maroon '92 LSl 130Kmi +- (sold to Ron, mashed by moose, crushed)
Black '89 XT6 5spd AWD (storage)
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