We should let the OP clarify but he/she said:
and
and

I chased the same problem (no transmission activity in any position) on a 300E but eventually failed.I got into the valve body and found a broken K1 and broken B1 spring. I even removed the valvebody completely and inspected the internal linkages but found nothing. The broken K1 and B1 spring did not fix the problem. The pump was pumping but I dont have a gauge but my theory was a pressure relief valve in the valve body had stuck open but I found nothing wrong with the valve body. I eventually resolved to telling the guy it was deeper in the transmission than I want to dig and he should find a good used one. I recommend removing the pan and valvebody to see if you find anything however I did not.

I checked the linkage and seems fine to mile. Clips are still on and its moving more free than usual, or at least it feels that way. I'll move the shifter to any position and it just doesn't drop into gear. ~ I have noticed it does NOT move anywhere under its own power. Just behaves like its in neutral, unless parked. ~ I checked the fluid level and the fluid itself wasn't ruby red.. but dark.. very dark, odd since I did replace the filter and fluid maybe a few hundred miles ago. I did not drain the torque convert at the time though (tried to, but bit broke).

Pull a cooler line and see if it is pumping.

Not to hijack but I have checked my frt pump on a 83 300cd with the same issue ,good pressure ,whats the next step?,this might help move along the original post originators diagnosis..I was told that some Torque Converters can fail with this exact issue .

When my 85 300sd had those symptoms the pressure was low, ~ 1/2 of what it was supposed to be, and new front pump seals fixed it. 2 rubber O rings if I remember.

I believe the next step would be to hook a pressure gauge to the port on the side and check the actual pump pressure-and it ifts very low maybe a valve is relieving all the pressure when it shouldn't. My guess is its a relief valve open or a piston which controls all functions is jammed but I don't think there is such a piston.