I would check the oil level first, would also suggest changing it if it hasn't been done in awhile.

 

just filled it up to the top... truck only has about 69 or 73k miles on it.

 

What type of oil, mine uses ford automatic tanny oil, it makes a lot differents.

 

I assume it is a stick-my question: will it shift into gear smoothly when the engine is off? And the grind while engine running when you shift into reverse? If so then it may be either hydo-clutch system or clutch assbly itself.

 

it is hydro-clutch then... easy to shift while off yet harder to shift when on.. cant even put it in first.:idk:

 

The problem is that the clutch is not fully disengaging. The engine is still causing the gears to turn when it is depressed where usually the gears would stop and allow 1st and reverse to be smoothly engaged.

Regretfully, it probably is the hydro system-check the fluid levels first. There is a small reservoir on the fire wall above the master cylinder. You can also try bleeding the system-I suggest investing in a repair manual for full instructions on how to do this-also check Autozones web site for instruction as they have repair guides there.

Also read here:
http://www.fordforums.com/f279/94-ranger-clutch-questions-161506/

I hate to say it, but more likely the system will need repaired-this means replacing the master and slave-and this means of course dropping the tranny and as long as you are there...the clutch may as well be replaced at this time. I had this exact same problem and I replaced the clutch only and the problem continued. It was only resolved when I replace the clutch and slave....a lesson learned the hard way for me.