Question one is, my tracker is a manual transmission 2 door  4x4, came with zero options.  I'd like to add AC to it. I know I need a compressor and another dash panel control. But what else. Is this possible. Or totally not worth the effort.

Second question, I purchased this from a dealer, it has a 2000 mile 30 day mechanical failure warenty, from the Honda dealer, after getting it home I noticed I can not get it to downshift 4 to 3rd or 3 to second unless going really slow. Otherwise it grinds.  My guess is it needs synchro work. Do you think that is covered by them or would that not because mechanical failure. Just looking for an opinion be for I bug them about it...

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I would bug them about it - worn synchros ARE a mechanical issue, they may tell you it's a wear issue, which it is, but what do you have to lose by asking.

Check and see how easy it is to get into first & reverse with the vehicle stationary & the engine running, how far is the clutch pedal from the floor when it starts to engage?

Clutch is less than half to engage.

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And 1st and reverse are fine, 1st I'm doing at a stop though. I just seems the other gears at speed above 20

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I totally agree with Fordem.  The 2nd 2nd gen Tracker I bought, I purchased from a Honda dealer too.  It drove well, shifted well, etc, etc... however I noticed shifting it from 4HI to 4Lo was very "stiff".  At the time, I attributed this to the transfer case not being used much. 

Long story short, I was wrong.  What I SHOULD have done was immediately returned it to the Honda dealer OR offered a grand less for the truck.  Within a year, I couldn't shift it into 4Lo at all.  This is the same Tracker AJM purchased from me about three years ago and I was up front on this issue with the truck at the time of the sale.

Morale of the story:  Make Honda fix it right BEFORE your warranty period expires.  Having a shop rebuild your tranny with new bearings, synchros and seals will set you back some where around $700-$900 dollars.  Make them fix it or adjust your payment price accordingly.

You could also pay to have have them install a new clutch and throw-out bearing in your tranny while it is out too.  That would be money well spent.

I recently had my tranny on my current Tracker (with around 200K on it at the time) rebuilt using a Cobra Transmission.com rebuild kit.  My tranny now runs and shifts ALMOST like new again.

The reason I asked about first & reverse with the vehicle stationary is those are the first place a clutch "drag" issue will reveal itself - clutch drag is when the clutch does not completely disengage and continues to provide some drive even with pedal fully depressed, and clutch drag is another reason you would have trouble changing down but not up.

On the particular model you have, the clutch is "self adjusting" and one of the quirks of the mechanism is that as the clutch wears, the pedal gets lower until it's engaging, literally with the pedal on the floor, and at that point clutch drag will occur because you can't push the pedal through the floor.

In your case, the pedal is at half travel, and first & reverse engage fine, clutch drag has been eliminated, leaving worn synchros as the most likely cause.

Just a quick follow up on nprecon's post.

Shifting in & out of 4L requires the vehicle to be stationary, and the transmission in neutral, and should be almost effortless - shifting between 2H/4H can be done with the vehicle in gear & rolling, but in my experience takes a little bit of muscle to get the lever out of the 2H position - over the years I've developed a sort of back hand flip that works quite well - palm the shifter knob, lever between index & middle finger, hand vertical and then snap the wrist forward.

I installed AC into my 1987 Samurai. It took me and a friend from Friday night to Sunday afternoon. TOTALLY WORTH IT.

I was fortunate enough to have my Sam and the donor Sam parked side-by-side. Removing it of course is why it took so long. And the benefit of seeing where things go, moving part by part, was immeasurably helpful.

Cool air in the So Cal heat and to have sold the donor Sam for the same price I bought it was awesome.

Did you have noticeable power loss or loss of top end with AC on the 1.3?

I've never owned a Samurai, but on a 1.3 Suzuki Swift (which is the same G13 engine), the impact of the a/c on power is very noticeable.

Wow thanks guys for your responses.  Calling Honda today.  Ac sounds like a good project.  I'll see if I can find a donor vehicle.

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After installation, my MPG dropped from 22 to 18. Don't care. There's a slight but noticeable power loss with the AC on - when you need more power (up a hill, passing on the freeway), just turn it off. Still TOTALLY WORTH IT. If you wanted big speed or power, you'd be driving just about any other car, right?

Here's a photo I took last night on the freeway at 70mph returning from the airport, with AC on, myself and my wife + luggage. If that doesn't work for you, you have the wrong car.