Trany Problems

Yes I believe you have it Glenn!

In the photo with the screwdriver you can clearly see how much the syncro hub has moved away from the 2nd gear so the syncro sleeve does not uncover the syncro balls.
Some great photos of the PRE 39 transmission and syncro.
 
As others posting have already mentioned, your transmission must come out of the car to fix this problem.
When making this repair you may want to consider upgrading your transmission to the later, improved synchronized gears used from 39 to 48.
I just recently made this change/upgrade to my 35 fordor sedan (avatar) and it has made a huge improvement to shifting quality, and solved the constant problem I had of jumping out of second gear.
I used the complete gear assembly from a 40-48 passenger car transmission. You would also need to use a shifter to with wider 2nd/3rd gear fork.
 
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