@Billsboat
Your PTO unit looks like mine. In your picture, let's assume the actuating lever (the flat bar sticking straight up, with the hole in the top for the shifting linkage) is in neutral, so the input gear (that meshes with the transfer case) is free wheeling, not driving the PTO unit).
If the lever is pulled forward with the linkage, the output gear is engaged directly to the large input gear, and the PTO drive shaft turns in the opposite direction as the input gear.
If the lever is pulled backward with the linkage, the output gear engages with the "reverse idler gear", and the reverse idler gear is constantly engaged with the small input gear. In this case, the PTO drive shaft turns in the same direction as the input gear.
I believe that your shift linkage (or the hole in your transmission tunnel cover) has not been adjusted to allow you to shift into the forward or backward position, which only provides you the result you are observing.
EDIT: There is also the possibility that someone removed the reverse idler gear, in which case, pulling the lever backwards will just disengage the output gear.
Also, FYI, if you don't have one yet, I think the boot for the lower shaft is still available.
Your PTO unit looks like mine. In your picture, let's assume the actuating lever (the flat bar sticking straight up, with the hole in the top for the shifting linkage) is in neutral, so the input gear (that meshes with the transfer case) is free wheeling, not driving the PTO unit).
If the lever is pulled forward with the linkage, the output gear is engaged directly to the large input gear, and the PTO drive shaft turns in the opposite direction as the input gear.
If the lever is pulled backward with the linkage, the output gear engages with the "reverse idler gear", and the reverse idler gear is constantly engaged with the small input gear. In this case, the PTO drive shaft turns in the same direction as the input gear.
I believe that your shift linkage (or the hole in your transmission tunnel cover) has not been adjusted to allow you to shift into the forward or backward position, which only provides you the result you are observing.
EDIT: There is also the possibility that someone removed the reverse idler gear, in which case, pulling the lever backwards will just disengage the output gear.
Also, FYI, if you don't have one yet, I think the boot for the lower shaft is still available.