Somebody must have went savage on the shift lever.:D
Without the roller you can move the valve out of place. Fix this first, then try reverse again.
No reveres could be a failed clutch. The only way to find out is breaking it down and rebuilding it.
Check the accumulator body for a sticky or damaged valve, broken or tangled springs.
3rd (direct) and reverse use the same clutch. If the direct drum doesn't apply you will not have reverse. So I would start with the accumulator body.
Ford has no clearance spec for the low/reverse clutch pack. In stock for they usually run around .050-.060"+. The quick fix is replacing the boost valve. Sonnax and TransGo address this problem with their kits. The better way is to reduce the stack clearance. Try to keep it around...
02 will not have a drain plug in the converter. There are write ups on how to do a flush on a 4R100..
Fluids you can use any Mercon/Dexron or Mercon V fluid. Mobil 1 or Valvoline Max Life are good to use.
Your code reader must not be picking up the codes. With the OD OFF light flashing there are codes.
Sounds like the Transmission Range Sensor (TRS) is failing. The sensor on the left side of the case.
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