Sounds like something wrong with the gear shift interlock mechanism.
I'm not familiar with the D4D but removing the transmission cover would at least enable you to see if the transmission input shaft is turning (the shaft that passes into the transmission, not the joiner between the clutch and transmission). On the D2, there is a key in that joining shaft. I could imagine if that key let go, the joiner would turn but the transmission would not
Sounds like you need a clutch adjustment. May be enough to turn transmission input shaft but not enough to handle load.
thanks to all for your replies. THe clutch output is good for sure as we pulle cover and watched as we ran it. I am goign to pull cover of transnmission and ill see what we find. I am suspicious of the sleeve from clutch to tansmission input as well. thansk again.