Re: 1962 Rude 5.5 shift handel' help please
The inner lever has a slot and is clamped tight by a screw. Completely remove the screw and slide the lever off the shifter shaft. DO NOT attempt to spread it open at the slot, because that WILL break it.
You will need a new powerhead gasket and a new 303355 seal plate gasket, and a new 303347 seal o-ring. Make sure the rest of those seal parts are in good shape too. That stuff is a powerhead killer if neglected. Also, get a new o-ring for the shifter shaft.
When is the last time the water pump impeller was replaced? This is an excellent time to do it, because the powerhead has to come off for that too.