The drain lever was in a closed position, so I removed the 2 screws. Inside I found the lever and am able to remove it enough to grab it but it is separated from the drain lever. How do I fix that or is it broken? Do I need a new one?

This should help How to Fix a Bathtub Drain Stopper | Video | Tub | Bathrooms | This Old House (http://www.thisoldhouse.com/toh/video/0,,20186457,00.html) I think your fix is just a matter of reconnecting the threaded adjustment rod.

See the images below will give you an idea how to fix, Thanks.

John