A friend has a 2001 Protoge that is stuck in 3rd gear. You can move the shift lever around to any gear but the trans doesn't change gears and also won't go into neutral. The clutch seems to be working since the car can be driven but only in the same gear it's stuck in.

Today I checked the master & slave clutch cylinders and found no leaks or any other issues and the slave cylinder rod is moving when the clutch is pressed. The shift linkage and bushings also looked fine. The rod connecting to the shift linkage entering the trans does move but the gears don't change. I'm thinking something is wrong inside the trans. The car has 160K miles and has a 2.0L engine.

Do you guys concur that it is a bad trans or do you have any other suggestions of what it might be or things to check?

Thanks....! 8-)