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Our 2008 smart fortwo will crank and shifter moves but won't go into gear and move forward or back. I put it in neutral and I can roll it. It has done this on several occasions and I would just kill it and restart and it would eventually go. This time nothing!! Seems to be only in the morning after setting all night when wife gets in it to go to work. I don't think it has ever done it when it is hot. She drove it less than 48 hours ago and worked fine!!
 

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First step is to do the transmission teach-in. Turn key to the #1 position, step on brake pedal, and slowly move the gear selector from P, R, N, D. They slowly move the selector through each position back to park. Hopefully, you will hear some clicking coming from the rear of the car and the cluster gear display will return.
 
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