Most likely, the dogs are worn out on 2nd gear. 2nd gear in the SM465 (117 mm RPO M20) trans is not a sliding gear -it's stationary. Engagement is done by the shift collar locking on to the little steel spurs on the end of the gear. Once they get worn - usually at an angle - they push them selves out of the shift collar. 2nd gear usually gets the most wear in any 4 speed.
If you look closely at them, and they are worn, you can assume the part of the shift-collar that slides over them when using 2nd gear - is just as worn.
As already mentioned, other things can cause it also - but dog/spur wear is common in 2nd gear.
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