I’ve recently replaced the handbrake cable on my 1989 350 BB and took it for a test ride. It changed gear fine and selected H, L and Rev fine – except when I went out of reverse back to H, the "reverse" light stayed on. And when I shifted into Neutral, the Reverse light stayed on, and Neutral light didn’t come on. Of course this meant, when I switched the engine off, the damn thing wouldn’t start again.

So I tried to trace any probs with the wiring, using the japanese manual, it seems to point to faulty reverse sensor. So I took it out of the casing. If I touch the plunger on the sensor on the engine casing, the Reverse light goes off and the neutral light comes on.

Does this indicate the reverse sensor is faulty?

thanks in advance.