Yes indeed that is definitly your 1st/2nd/ rev. slider (synchro assy). That is what happens when the teeth get chewed up or bad blockers rings. How the transmission actually works is when you engage 1st gear your 1st/2nd/rev. slider(synchro assy) sliders rearward on the output shaft and there are blocker rings that act like brakes along with 3 keys that are in the syncro. When you engage 2nd gear the 1st/2nd/rev. slider (synchro assy) moves forward on the output shaft and there to are blocker rings that slow it down from spinning and it locks into 2nd gear. For 3rd gear 1st/2nd/rev slider (syncro assy) centers itself and the 3rd/4th slider (synchro assy) moves rearward and the same process takes place and it also has 3 keys in the synchro. When you engage 4th gear the 3rd/4th slider (synchro assy) moves forward to lock the input and output shafts together. When you engage 5th gear the 3rd/ 4th slider (synchro assy) centers and the 5th gear synchro slides forward. That is how th T5 works. Those keys also break during hard shifting and/or power shifting. If you need any help feel free to PM me and I will give you my phone #. Its not a hard tranny to rebuild. You will however need a press to get a few things off the shaft and the bearing will have to be pressed back on. Other tan that all you will need tool wise is a 3/16 roll punch, 10mm,13mm,15mm sockets, 5/8 wrench, needle nose pliers, dial indicator, and dial calipers. You can get another 1/2/rev slider used for about 40-50 bucks or a brand new one for about 80 bucks. If your 1st gear is destroyed you can get a used one for about 25-30 bucks ans a new one for around 65-70 bucks. If you get a rebuild kit make sure you get a master or premium one it should contain at least 100 parts or more. That will be everything you need w/ the exception of the 1st gear and the 1/2/rev slider synchro assy. The rebuild kit is anywher from 189 -240.00. Dont get the ones you see for like 100 or so dollars. It doesn't include everything to do a complete rebuild and unless you enjoy pulling trannys you will regret that you ever saved the xtra dollars to half a## it.