Does the lever just flop back and forth? All of mine use a roll pin to connect the shift lever onto the rotating shaft that enters the side of the transmission. Is this what you mean?
I am not where I can look at my tractor, but this diagram
http://www.hoyetractor.com/mm5/merc...Store_Code=HTE&Category_Code=YM15104WDSHIFTER shows a similar Yanmar machine, and has the best diagram I've found. These tractors are all more or less the same among the different manufacturers, so this should give you a decent idea what you're looking at.
Part number 6 turns and engages the slotted piece, number 10. When you pull the lever back, the finger pushes part 10 forward on a shaft. Part number 8 is pinned onto part 10, so slides forward with it. Part 8 has a tab that sticks out and engages the drive gear for the front axle, part number 22. The three teeth on 22 engage with part 21 and drives the front axle.
My tractor had part 10 get rusted, since it is open to the bottom. When trying to force it into 4 wheel drive, the finger on part 6 bent. I had to disassemble that assembly, straighten the finger, and re-weld it. Part 6 and 10 are exposed underneath the open housing of the tractor. Part 8 is inside the transmission casting, sealed by an O-ring. Part 21 and 22 are inside the casting as well. So, parts 8, 21, and 22 get lubricated by the transmission fluid, while 6 and 10 are exposed to the elements and corrosion.
Other designs are similar. Here is another Yanmar, this time with the lever on the right hand side of the case:
Yanmar Tractor Parts: SHIFT_LEVERS
Part 32 sticks out the side of the case, and directly engages with part 27, the shifter fork. Pulling back on the lever moves the shifter fork forward, and engages the front axle. On this model, except for where part 32 sticks out of the case, the parts are all inside the transmission and thus lubricated by the transmission fluid.
I think your machine is more like the first example, though on the other side.
Take some pictures of everything you can, and we will do our best to help you.