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Your transmission has gone in to a limp home mode or fail safe mode, trans computer has locked third gear to prevent any more damage. Needs a diagnostic scan to confirm fault code could disconnect battery for 10 mins and drive to see if problem reaccures. Trans computer common to fail.
Sorry but it sounds like it is trassmission time. you see the 3-5 gears work on another ration thatn 1& second they are on one shaft. the reverse is off in another world. sounds like one of the rods go stuck this is why the reverse lights stay on...
Hold your breath. It will be expensive but then on a manual I would see if the repair shop will find a used tranny. for 1/2 the cost..
Try the plastic guides for the gear selector failing that GTO are really bad for destroying gearboxes if it aint the clutch or clutch cylinder... To be honest i would say the box but go for the cheep option you may get lucky... good luck mine cost me 1300 to get repaired
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