Hello and thanks in advance for any advice that you give.
Did not drive my manual\4speed 240d for about a week. when i pushed in the clutch pedal i heard squealing (like a belt squeal) and shifting was hard. i tried again about 3 times and the noise and shifting became worse. now it does not make much noise but it is stuck in 1st gear (but the gearshift is in neutral). Trans and brake/hydro fluids are ok. the clutch seems to work as i start it and release the pedal it does rapidly engage and surge forward

Could be the rubber bushings on the linkage or maybe the linkage is not tight where it bolts into the transmission. Both are easy fixes and one of them will hopefully fix oyu right up.

Len
'83 240D 344,500 miles original owner, converted to a manual transmission

Your pilot bearing or your throwout bearing have given up the ghost and need replacing.... they are now providing resistance which is causing your synchronizer gears to not function properly.....
Just a guess....

have you checked your shift rods below? also, i had an 82 240 that the shift levers on the bottom of the shift mechanism actually rusted off. a broken armor rod off will make it all act really crazy.

__________________
[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.[SIGPIC]

..I also have a 427 Cobra replica with an aluminum chassis.

thanks for the input everyone. the rods and levers seem ok but i will continue to check. i purchased a chiltons manual and it does not offer any help except for a fair description of clutch removal. it shows only a picture of bearings. i suppose clutch and bearing replacement would be my next step???? i am not a mechanic but i would like to save money at this time. would i be better off taking this to someone for a full diagnoses and possible repair or tackling it myself?

The most important thing is the diagnosis.... if you attack some other problem you will still have the actual problem...
So paying someone to make sure the diagnosis is correct, if you don't feel confidant doing that, sure makes sense.
Only then can you decide if you have the capacity to fix whatever is wrong.