Transfer Case Shift Lever and Shoe Ball/Drive Shoe Don't Line Up? Wrong Shift Arm? Missing Washers? '82 fj40 (1 Viewer)

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Thats not too bad, the pivot has some bushings that you could replace that might just fix er up,
 
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I may be camera lens distortion, but it appears the shaft screwed into the transmission that the arm pivots on, is bent upward.
 
It looks like the bushings are failed letting the shifter kick at an angle on the post, hopefully that nut comes off easily
 
The lower part of the arm is bent up. It will be easier to straighten if you remove it.
 

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