It’s the holiday season and I know I am supposed to be seeing all the good things in life, including in your transmission, but, from what you are telling me, I’m going to have to play Grinch.
Whether you know it or not, you have diagnosed your own problem, you just don’t realize it. The fact is, it’s right there in your description: “… Also I am seeing a lot of what looks like trans fluid on the point where the part of the transmission … ”
It looks to me like you have lost a good deal, if not most, of your transmission fluid. Yes, manual transmissions require fluid, just like automatics. The key differences are the type of fluid and the amount. Since your truck has a manual, you need manual transmission fluid. This may sound like an oxymoron, but it isn’t. The reason is that automatic transmission fluid is meant to do a bunch of things: lubricate, cool and operate the transmission. Manual transmission fluid has to primarily lubricate and cool. Automatics usually require lots more fluid than manuals because the fluid is the enabler in the automatic while it is the lubricator in the manual. A manual uses physical contact, while the automatic is all about fluidics.
With all of that said, plus one more factor you mentioned, age, and your transmission problem was a ticking problem just waiting to happen. I don’t know when you last had any sort of preventive maintenance performed on the transmission. However, I suspect it was a long time ago at a service area far, far, away, as in maybe years ago. Over time, the transmission fluid has become dirtier and dirtier and is carrying more gunk around in it.
Granted, manuals work because you do the shifting, without relying all the whirling parts inside the transmission housing. At that, though, your transmission still needs lubrication. And, as time has passed the fluid’s ability, as it has become dirtier, has become less and less. It just isn’t working anymore. Instead, you are experiencing failures. It probably begins at the interface of the engine and the transmission, the clutch and friction plates and moves on from there. I suspect that if you pull the transmission, you will likely find that one or more of the gears are shot, perhaps to the point where a cog or two may have either been smoothed or may have broken off.
And, it is also possible that the throwout bearing is also failing, among other things.
With all this said, I think you can see what I am saying, your tranny is shot and you will be replacing it. I hate to be Grinchy about it, but, you will be replacing it soon. It will likely cost you about $2,500 or so.