is there fluid in the shifter box, the shifter that goes in h and reverse and low that you grab on to, it looks like dusty oil around it

 

Yes it uses engine oil filled level with the shift box slides.0w40,5w40,etc are ok to use.Possible the cover needs to be replaced if damaged and leaking,plus you have to be careful on the small centering spring and the two larger detent springs if you remove the cover. Best to remove it from the machine and lock it in a vice to work on it.That would be a good time to replace the slide o-rings and any other worn parts while it's apart.Polaris ATV Parts 2001 A01CH50AA SPORTSMAN 500 HO GEAR SELECTOR Diagram