Before we start pointing to the inside of the tranny, check the eyelet bushings on the tranny side and the shifter bushings at the shifter. Also, as you seem to be aware of, see if the linkage is hooking up on something.

As I read your post, you seem to say that it pops out of gear also, right?

Captain Caveman

96 RS Turbo 11.414 @ 119.62 MSNS, Crower 2 NA cams, BW366, 10.5 comp, UDP, 60mm TB, W/A intercooler, 3.55 tranny 567.9whp 430tq
97 RS NA 13.188 @ 103.87 MSnS powered 12.5 comp, Crower 3's and 219.4whp with 175tq
98 RS DD 12.5 comp on stock ECU, LTH, Crower 2's, Koni, GC, Hypercoil, DG hats
99 OZ 5sp Stocker 15.856 @ 85.97
99 GS stocker auto 17.7@77mph!

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