I just read Kurt's 5:06 post which wasn't there when I started my first reply.
I am not clear on whether you have tranny problem or a clutch problem:
When you say that the car is in neutral all the time, do you mean that if the shifter was in second gear, the motor running, your foot was not on the clutch pedal (clutch plates engaged), that the car would not be moving forward under the engine's power?
If that is the case, then some tranny/clutch problems are possible:
blown friction plate
rubber centered friction Plate (still used in "84??)
collapsed pressure plate
Stripped clutch splines on tranny input shaft
Really bad stuff in the tranny
On the other hand from your first post, it sounds like TO bearing release fork failure -