If the manual linkage is in good working order it likely has a valve body, rear servo or band issue... The servo can be serviced externally, probably the most common issue...
Can you send me a picture of the servo. What generally goes wrong with it, and if that is the problem how do I fix it.?
Drivers rear of trans, no doubt instructions/pict on net... http://www.ebay.com/sch/i.html?_fro...H0.Xford+c4+servo&_nkw=ford+c4+servo&_sacat=0
Since C4 was interdicted it has had a reputation for having a problem with the rubber coming off the reverse servo piston! but It is also known that the Solid Band at the rear that holds the drum to engage reverse can have a broken ear that holds the servo pin ! if it is the Reverse Servo piston you will have to drop the pan because when the piston is removed the link between the piston and the band will fall apart ! If it is a broken band the transmission has to be disassembled to get at the band!