That means the "Prindle Switch" or the black plastic thing on the driver's side of your tranny with the 2 wire connectors go into it is not aligned correctly.
+1. Look where the gear selector shaft goes through the Prindle switch--and then bolts to a drop arm where the cable is connected to. Block the tires and pop the cable off with a small slot head screw driver. Then reach over and pull that arm back two notches to the Neutral position--this is the position where it needs to be if you need to remove/install it from the tranny for any reason. It should not be installed when the tranny is in any other gear, cause you will not get everything aligned correctly.
Ok, now look at the Prindle switch REAL CLOSE cause there is a small tab at about the 2 o'clock position that aligns with other tabs on the section where the gear selector shaft comes through the Prindle switch. Do the tabs line up? If so, your Prindle switch is bad and you need a new one. If they aren;t lined up, do what was mentioned earlier--loosen the 2 bolts that holds the Prindle switch to the tranny case and swivel it to make the tabs align, then tighten the bolts back down. Push the arm back into P, snap the cable back on and then go check the gear selector on your dash. Everything
should read correctly.
