Verdict, there is a plastic grommit/lock washer deal that holds the shifter cable to the shifter linkage. The 30 cent lock washer broke causing the shifter cable and shifter linkage to disconnet therefore you could not shift the gears from inside the truck. You could however under the truck without the cable being attached.
Apparently you cannot simply buy the nut, but rather you must replace the whole cable. It should not be a big deal, but it sure would be nice replacing a simple $0.30 lock nut as opposed to replacing the whole $65 cable. If anyone knows a way to get this lock nut, please share.
Our source of the problem:
Trail fix(zip ties do not work):
