Volvo Penta MD2B gearbox won't go into gear

mogmog2

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When I started the engine on our new boat, which had been idle for 2+ years, the gear mechanism was stiff, but once freed off worked fine for the handful of operations (in & out of gear a few times on the mooring, then a test drive & a certain amount of gearchanging getting off the mud and motoring off the mooring a week later)

However, I forgot to open the seacock for the cooling water and the engine threw it's toys out of the pram & stopped after about 20 minutes. We sailed on & later at sea I patched up the melted exhaust & started the engine & gear engaged apparently OK.

Less than 2 weeks later, started the engine but couldn't get it into F or R gear.

I found the oil to be low - just on the end of the dipstick, which I have read on here* should not be catastrophic.

The cables look to be in very good condition - still shiny so I don't think it's them, although next job is to isolate the gear cable.

Any idea why it should work fine & then not? Where to start? Especially in the light of a thread about whether the gearbox needs water cooling at all.
Many thanks

EDIT: The cable is free to run. I have been able to rotate the actuator arm a bit with a cold chisel on it and gently tapping with a hammer. I cannot get it to rotate by applying torque to the chisel when wedged into the arm.
Any idea as to what might have caused it to seize/fail so solidly? Quite possibly coincidental to the overheating incident?
This is what the oil looks like
*http://www.ybw.com/forums/showthread.php?250321-Volvo-Penta-gearbox-engine-problemIMG_20180407_182224145.jpg
Thanks
 
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