Sounds like the trans and auto-neutral finder are working. pushing down engages first gear but without the engine running it will only go to neutral when lifted. As for the seal, not having done it myself, I don't think it's too big of a job. I'm sure someone who has been there will correct me but it could be as simple as taking off the shifter arm and pulling/replacing the seal. at most you would have to pull the case side which calls for engine removal or at least tilting in the frame, niether of which is too terribly difficult.
I'll sit by and wait to be corrected if needed.
87 vn750at least that is what the frame #'s say
"Squirrel Bike" aka Jersey
Rat bike with a good PR agent
shaved and coastered
2 into 1 exhaust
rear 170 and front 110
custom dash with voltmeter
Recovered seat without "butt hammers"
More to come
Praise to the Parts Goddess Crobins for needed things
When someone tells me "Great minds think alike" all I can think is "You Pervert"