Considering the age of the transmission it is not surprising that it failed. It could be a clogged control valve, worn out o-rings in the reverse clutch piston, clogged oil passage. Obviously the transmission needs to be pulled for an overhaul. After it is cleaned and the clutches, o rings have been replaced, etc, it should be good for another 40 years,
You can pull the neutral safety switch cover off to take a look at the control valve. It might give you an idea of the crud buildup. Clutch plates wear and the material tends to buildup.
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