Originally Posted by CA Stu
You do know that's where the real neutral is, right?
Seriously, check that your shift lever is tight on the shaft.
If it is the OEM one, consider replacing it with an IMS or Moose shifter.
The factory shift levers are prone to cracking at the weld, and any sloppiness / flex will prevent you from making a nice positive shift.
Edit: Also, if you have an aftermarket skid plate, the shift lever will hit the top of the mounting bracket on the downshift from second to first and you'll have a hell of a time shifting down into first.
I ground a groove into mine with a file to give the lever some clearance. (The mounting bracket, not shift lever)
Moose lever should be in this week, I ordered it last week. I've checked all you mentioned, and it's tight and square. I am used to shifting BMW dry clutches, which are not noted for their feather-light action. I know it's a false because the neutral light doesn't display. It's affected by oil choice, which indicates something internal. Kind of a PITA, but only occurs when cold.