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I have a 1998 Disco and had the same problem. There's a little metal clip in the shift knob that pops off and when it does you can't shift it at all. Pry open the cap on the shift knob and you'll probably see the clip is not where it's supposed to be. Call your LR dealer and tell them to fax you instructions on how to reinstall it...it's pretty easy.

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Q: Why is the Transmission stuck in park on my 2004 Land Rover?
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