318 LA rebuild after losing a valve seat

If the Park Pawl is jammed, the trans can still be shifted as you describe. Notice in the first image below, the Park rod is spring loaded on one end. This is so you can put the trans in the Park position with the shifter, but the car may have to roll a few inches on occasion, until the spring shoots the parkrod into the pawl when things line up. You can see the pawl in the second picture, and the lock-ring it engages.
In the third pic you can see the loc-ring mounted onto the output shaft.
Ok but here's the thing; After park has been successfully engaged, And if it jamms in there, that same flexibility allows you to move the shift lever, except now it feels like crap.
So
All you gotta do is un-jam the park rod.
So put the trans in any gear except park; then just gently rock the car back and forth, until it pops out. If the lever will not stay out of park, zip-tie it in reverse or neutral so it HAS to stay out of park.
IDK if it's possible, but if your 727, Park position has never worked right; perhaps someone installed a 904 parkrod in there. I know the 727rod won't go into a 904, I figured that out one time,lol. But I don't know about the other way.
Take a look at those park rods they are different.
And finally, if it just won't come out, I suppose the parkrod has become disengaged from the roostercomb, and you will have to
drop the pan.
and the VB
to re-engage it. and secure it with the E-clip

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Thanks, I’ll give it a shot. I’ve got a 904, so I don’t think it’s an incorrect parkrod. I need to somehow figure out a way to keep the bellhouse from twisting when I push the car, I think that might be preventing the mechanism inside from disengaging as well.