Stalwart: It has the red stuff in it, so sounds like a rebuild. I never had any issues with it, besides it not wanting to shift if I didn't let it warm up enough on a cold day. Probably put 200 miles on the truck. Also, it had high range reverse locked out with a plate. I believe I read high range reverse is failure prone if abused (big load, in reverse, up hills). Its not a bad truck, but it does need some TLC. The current owner and I would both love to see it go to someone who cares about MV's. He's already had a couple scrappers try and buy it, and promptly told them to move along.
I REALLY don't want to be misunderstood here. I initially LOVED my M211, even when it first failed me after 18 hours. I even went to to effort to purchase a 5.9 Cummins and 4 speed auto with 30,000 miles for it. I decided to give it a second chance and try a rebuilt transmission. Although it wasn't exactly hard to R&R the trans. it wasn't super easy either, since I work alone. I've been blessed with a wife that allows me to purchase tools to make my projects easier.
I have heard of others who have had problems with Memphis rebuilds, I only cite myself and another person who I know personally. Perhaps it was just a problem with the rebuild shop during the early 2000's. I have no idea . . .
Cleb, I have heard good things about the manual control of the transmission, I've even heard that they even hold up under moderate to severe duty as experenced by individuals using them in small logging operations. You are completely correct about the reverse issue, reverse "high" should never be used (I suppose flat ground/downhill and no load MIGHT be OK).
I only suggest caution with the transmission, it is the weak link of the ENTIRE truck.
Still my favorite Deuce but I'm insane, hence the Stalwarts.