Thanks for the advice I received from the Forum. After looking at the feed-back, I went for a ride to see if I couldf pin-point the problem. It turns out that the tranny is the problem. While it never totally pops out of 3RD gear, that is where my problem lies. It looks like I'll need to break down and rebuild the Tranny; or maybe just forget about 3RD. Any feed-back about much trouble it is to do? Should I just plan on doing the whole engine and Tranny? Thanks

 

Tranny isn't as much work as a whole rebuild. All you have to do is split the cases and replace the gear and fork(I had the same problem, fork was burned and the gear was actually cracked, causing it to jump). A whole engine rebuild requires you to remove the head, cams, crank etc,,, along with buying the gaskets. If it needs a rebuild now would be a good time to do it, but if it's still in good shape the quickest and cheapest bet is to just replcae those 2 tranny parts.

 

Actually 3 parts: 3rd gear on both main and counter shafts and the shift fork