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My bet is shifter adjustment.Three things are working for you in 3rd gear: 1) Forward Clutch is engaged, 2) Direct Clutch is engaged 3) Intermediate Clutch is engaged, and 4) Intermediate Sprag begins to over-run.Since the Forward Clutch is engaged in 1st, 2nd, and 3rd you can rule that out. The Direct Clutch is engaged in 3rd and Reverse so you can rule that out. The Intermediate Clutch is engaged in 2nd gear Auto as well as 3rd, so that should be ruled out. If the Intermediate Sprag was shot you wouldn't have 2nd gear it would wind-up really high in 1st and then dump to 3rd.So...if you truely lost 3rd gear, I am betting it is a shifter adjustment issue. But...how did it come about? Now take in mind that this is all coming from memory and I am not clear on the finer details of the TH350c.