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I kind of had the same problem, forward would not engage but reverse was ok. It all started out after I did some hard accelerations from a stop to full out trying to get my sled to lift the skis, went home and after that it was toast. By the way i got a '96 ext 580 efi, would not be surprised to see the same chaincase. So I thought it might be the linkages that where off but that wasn’t it. Tore it apart and found that the shaft that has the sprockets on it for the track, drive shaft i guess its called, the splines @ the end where twisted about 1/8" out of its original location. I'm theorizing that this caused one of the hafts inside to rub a part and so on.... its hard to explain. The shaft is probably in the range on 100$, then you got to get some sprockets put on it, probably replace the bearings since you're in there, almost 100%, inner chaincase parts about 50$ give or take. You could probably do it for cheaper if you look on eBay like I did and go to a "bearing place" to get the bearings(got one of theme there the other one was only AC that could get it, and they where all top of the line Fafinir OEM). You should also get the shop manual for the sled that will help alot. It could be something big or something small; you just got to open it up to find out. Sorry about long post.
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