Save yourself some time and frustration! Unbolt the bracket securing the wiring loom to the switch, pull the white lever and disconnect the switch's wiring connector get it out of the way. Remove the shifter rod clips and the rod itself. Count the number of threads exposed after the nut and make a note of that number somewhere. Get some of your favorite lube and get the nut and the locknut free, off the rod and the rod's threading cleaned up, reassemble to the original position.

If you have the plier tool used to install the new bushing use that after putting the bushing in boiling water for a minute to heat and soften, a spray of WD40 on it and install it into the tranny's shifter lever opening, it will take some moving it back and forth while twisting to get it fully seated.

Repeat the same process to the shifter's lever.

If you don't have the plier tool, remove the switch (two 8 mm bolts), then you can remove the tranny's shifter lever (one 10 mm bolt), use a long bolt/washer/socket ad hoc puller to squeeze the bushing into place if you can't get it in by some other method. With the shifter lever still off the tranny, get your nice clean easily adjustable shifter rod and attach it to the lever with a good clip. Put the shifter lever back on the tranny; put the switch back in place making certain that the protruding stud is positioned in the hole in the shifter lever. You might have to adjust the switch position basically rotating it a little one way or the other so that is functions correctly as an "in gear cut out switch/neutral safety switch" preventing an in gear start. Re-attach the switch electrical connector and the wiring loom bracket.

The shifter's lever allows more room to get the bushing installed but, if you can't get it done in place get into the center console and unbolt the shifter and get the bushing installed by whatever method works best.

Get the stud on the shifter rod's adjuster nut into the new bushing and check to see that the shifter rod is adjusted to the proper length by looking at where the interior shifter lever is located in relation to the shifter gate. Because you cleaned and lubed the shifter rod adjuster threads you can easily pop the stud out of the new bushing, loosen the locknut, turn the adjuster stud either longer or shorter and recheck the length. Once you verify that the rod is adjusted correctly tighten the lock nut and use a good clip on to secure the stud into the bushing there. Sometimes you will have to use a pair of pliers to squeeze the stud into the bushing and to compress the new bushing enough between the rod and the lever to expose enough of the stud to get the clip into the groove in the stud.

I then spray the threading on the shifter rod with white lithium grease or wipe some grease onto the exposed threads, this prevents it from getting too rusty if I ever need to make a later adjustment and allows me to do so without completely removing the shifter rod. Getting the clip back on the tranny shifter lever end in situ can be a royal pain so this helps avoid that!

Thanks Billybob,

I'm not sure which procedure I'll use. I may order the tool or clean everything up, remove the switch, and do it that way. Thanks for the response - I was stumped. I'll take pics and post them for the next member who wants to make this repair.

__________________
Jim Condax
1999 E320-167K
1985 300SD-160K
1986 Porsche 928S-98K

Check the local non chain auto parts stores in the area, the independent stores get their stuff through a distributor, when you go into the indy store they usually have a large multi-page monthly flyer. The local independent store distributor sells the plier type bushing install tool for about half of what it's listed for on eBay, I got mine for $18!

On a w124 300d the bushing at the lever is it on the 1st leftmost hole or on the second rightmost hole, reason i am asking is there were no bushings in the car and i dont want to have a shifing problem.
I wander why 2 holes?

Billy can you send me the info on how to order the tool? many thanks, i had the very nice plyers from V8 tools but TSA made me throw it away at the airport.