Hello!

I recently picked up a 1981 300td wagon with ~217k miles. I wasn't able to test drive it when I went to go get it, but I did get a video of the engine running, and it seems fairly healthy. However, when I got it home, and went to test the tranny, my gut sank.

Before I go into the details, I do want to mention that the transmission in this car is obscenely clean compared to the motor, along with the oil (bright red, correct levels). It almost appears as if it's been replaced previously, and I'm not sure if it has the "correct" transmission for the car. The numbers on the side are 722.303 02 052648.

The issues I have are:

1. I read somewhere that the 722.3XX is a 4 speed. When I went to drive it around, I could only find 3 gears.
2. Sometimes, when going from reverse to neutral, the transmission starts making a grinding sound
3. The biggest issue I have is with reverse. When you first start the car, or let it sit for 10+ minutes, reverse works no problem. Put it in drive, then back to reverse, and nothing. I can feel what I presume the pump engaging, along with the motor loading up, but nothing else.

With what reverse is doing, does that indicate that the reverse clutch pack is worn out, or is there something else I can check?