Re: Wife & Kids really want boat to work! Please help, gear question!
I would find it sort of odd that there was no metal or anything in the LU oil when it was checked if the gear is stripped out. There should be some sort of metal of some kind. I'm still curious if you have disconnected the shift cable and tried to shift it manually, while slightly spinning the prop to see if it will engage. If it does, something is out of alignment with the shift linkage.
I have another question also, when you removed the prop )or at least tightened it), what was involved in doing that? There should be a cotter pin, a nut, a washer I believe, then the prop, then another washer of sorts. If the prop was as loose as you say, from how it sounds it could have been loose enough to not grab the threaded drive shaft in F, but will in R due to the nature of the direction of force. If the cotter pin is missing, it would allow the nut to back off, possibly enough to disengage the prop-shaft when in F. Please check that before putting it in the water, I'd hate to see you lose a prop, propnut, and the washers just b/c a cotter pin was missing, which is a $2 part, if not less.