Yes, the end of selector shaft coming out of the tranny looks worn out. You need to remove the steel plate (4 bolts) at the bottom of the nose cone and press out a roll pin to get the old shaft out. (it's a good idea to replace the shaft seal if you go this route (part #
900-112-029-50-OEM).
There are three 'do-nut bushings: one at the rear of the rear shift rod, one at the firewall and another one under the shift lever. The 'do-nuts' are only for the shift rod(s). All three are identical (same part #
914-424-224-00-M260, the front one is # 22 in this diagram)
Click to view attachmentThe one for the firewall is # 31 in this diagram
Click to view attachmentI couldn't find a diagram for the bushing at the rear, but you'll figure out where it goes (in the cup right above your red arrow in your pic).
There is also one ball socket cup bushing, (part #
911-424-139-00-M260 CUP, # 11 in this diagram)
Click to view attachmentThere are also two ball type bushings (part #
914-424-512-00-M260), the red 'thingies in this diagram.
Click to view attachmentHere's the Pelican tech article
Click HereGood luck ...