The gasket would have little or nothing to do with it. Now the cover is off, you see the shift gate and rail are intact. The problem must be in the hi/lo itself. With the spring and detent plungers loose you can easily shift any of the rails by hand, so what does the hi/lo rail feel like? In theory, you should be able to slide it from hi to neutral to lo and back again, and with just a slight finger pressure on the detent spring feel the plunger drop into each one. Does that happen? You may have to rotate some gears/shafts to find the right spot, but if you can't make that happen you will need to get into the fork and sliding collar of the planetary unit on the back of the transmission. A rear split may be in your future. If the problem is with the fork or the collar, you may be able to get it out and back in place with the lift cover off. If it's in the planetary, then the split will need to happen.