BMW: unsure of transmission problem, engine camshaft, rust spots

Question
I've recently was given a 1984 325 BMW.The car has some serious upgrades done to the engine (camshaft,pistons,headers,exhaust,intake etc.) and has a very nice body on it other than 1 or 2 rust spots that have been taken care of.I'm severely uneducated when it comes to BMW's this one being my first. The car has been sitting outside in Toronto weather for 2 years.The starter is dead,the brakes have seized and I believe the engine has probably seized from the neglect.There's a leak in the fuel line and the sunroof is not working.I can do most of the work myself except for the transmission.The transmission does not seem to work.It's a manual 5 speed and it just wobbles.I can't seem to put it in any gear because there's too much play on the shifter.it literally just wobbles. My brother-in-law told me that it would not go into first so he would start off in second,then it wouldn't go into second and finally reverse so the car was parked and left since then.Also the clutch is dead too.Someone suggested that it might be the shifter needing tightening or fixing somehow as opposed to the transmission.I'm willing to invest time and money all winter indoors if the car is not severely crippled.Any suggestions? Any information that can point me in the right direction will be greatly appreciated.

Answer
Tommy,
 Sounds like you have a real project on your hands.  The only real question you asked was about the shifting, so I'll try to answer that one.

 Unlike most cars, these BMW's shifters do not directly touch the transmission.  There is a linkage that connects the shifter to the transmission.  This linkage can come apart and leave you without the ability to shift.  This may or may not be your problem.

 Here's a diagram of the shifting linkage (go to this site):

http://www.realoem.com/bmw/partgrp.do?model=1254&mospid=47308&hg=25&fg=05

 That should show you how the shifting works on your car.  In most of those diagrams the shifter is not shown, only the linkage to the back of the transmission.

 Good luck,
 Josh