What is the governor doing now? Not responding, or responding too much?

The shifting problem is most likely rust. If water gets past the shifter boot, it gets on the center shift rail (the one that shifts ranges) and causes rust. The easiest solution is to keep shifting it and hope it loosens up some. You may have to take the block holding the detent balls off the front of the transmission, as the springs can get rusted up and not move properly. I'd also check the transmission fluid for water. The oil will be milky looking if it has water mixed in.