Transmission pops out of 2nd gear, shifter movement, video...

[Abdul]

I own a 1996 Eagle Talon TSI AWD. A couple months ago my transmission started popping out of 2nd gear when I would let off the gas. It got worse until it would no longer stay in 2nd unless I held it there. I also noticed that in first gear when I would let off the gas the shifter moved about an inch backward. I researched on the forums and discovered this article:
Shifter wiggle/movement while in gear?
The article says it is for 1st gens and fifth gear but I read that it helped 2nd gens as well. I figured it was worth a shot since it sounded simple enough. When I removed the side plate the two nuts appeared to be very tight. I loosened the nuts and torqued them to specs. I also noticed there was some play in the shaft connected to the lower nut. A video can be found here:
YouTube - Trans
What does this mean? Thanks for the help!

 

[killer_eclipse]

as far as the poping out of gear: bad sycro's or chewed up gear i just whent through the same problem with the 97 spyder i bought my wife drives fine in all gears but when you shift into fourth as soon as you let the clutch out it would pop out unless you hold it in i ended up rebuilding it with the spare gears from my 96.... and the loose shaft probely bad bearings either way its probably about time for a rebuild

 

[my dreamt dsm]

Time for a rebuild man! There's plenty of tranny's floating on classifieds.
To the left, to the left, to the right, to the right. The vids funny how you played with it!
Goodluck and hope it goes well with that tranny!

 

[92AWDHX40]

Yep sounds like the tranny is gone, got mine done from tre, with a year warranty its past that and shes still good.

 

[pboglio]

Taper roller bearing is toast, or somebody never put in any preload shims. Either way, say hello to a tranny rebuild.

 

[->PrOjEcTGS<-]

Yep... I know all about the intermediate shaft not having the correct preload.

I bet your first gear whines also during acceleration?