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If you don't have the rear bearing out you need to remove it. Tap it out gently from inside with a long 3/8" extension. There may or may not also be a snap ring you need to remove behind the bearing towards the rear of the truck. Knock the bearing out, slide the shaft back and pull it up and out...

It should be quite obvious what the problem is. Don't worry about the bearings, it wasn't driven much if any at all without 2nd and 3rd. The metal usually just falls to the bottom and stays there. There is no oil pump in these transmissions.

Come on Kenny, we have a local member here that is in his mid 50's and just bought his first deuce. Don't tell me you're too old for it. Now, tired of the fuel bill or tinkering I could maybe understand. Myself, I find working on the deuce easier than any truck or passenger car I've ever had the...

Well Kenny you could always buy another one.

roflroflrofl