Radh2o, your column lockout assembly is jammed. Grasp the lower part of your steering column, just behind the key switch and turn counter clockwise. If it does not move, try it with the key in the on position.
The reverse trans lever is attached via rods to the column (looks like column shift thingy) then up the column to the inside ign. switch then to the steering wheel lock pin.
It sound like this assembly is binding on something, causing all your problems.
69' SS-350 ragtop, M20, 3.55 posi. Totally Disassembled & in boxes (I'm working on it!)
69' Hugger Orange Z-21 ragtop 327/PG, Driver