it is two things.
1) the selector plate that goes 'too-and-fro'. this and the base selector plate get 4 burrs on them (2 on each plate) like a boxers smashed nose....flat and spread.
I sell new too-and-fro' plates but the steel can be chamfered at the edges to stop the binding. 101627.
2) the second problem id the clutch drum which gets 'V' in them and stops you getting neutral. I do a kit that converts the 1989-2002s to a 2003-2008 set-up. 100153.
If you look at these two problems and sort them out you will always get neutral.
cheers
Taffy