There's a shift rod just for shifting first and second? I thought the rods were for up/down and left/right. I have no information on how this works but I was inside a Japanese 4 speed a long time ago so I used to know a bunch. First gear is loose too, just not as loose as second, so a loose 1-2 shift rod could very likely be my problem. I was under the car looking at it but didn't look close enough at that end of the rod, I'll take a good look tonight. If you're right you've saved my life.

Most of the grommets are new (the dealer stocked two of each) and the two inside the shifter, so the other gears are tight. They were in pretty bad shape so I was pretty sure, praying actually, they were the problem.