BE1900 Captain reports not being able to move the landing gear handle to the up position after takeoff. Flight returns to departure airport for an uneventful landing.

Narrative

On departure gear handle would not move to the up position. Had First Officer enter a hold at 9;000 FT while I ran the checklist for gear control handle will not move to the up position. This check list told us to move the j-hook manually and raise the gear handle. When I did this the gear in transit light illuminated and the gear warning horn sounded; but the 3 green lights remained illuminated. The check list told me if gear failed to retract then put the gear handle back down. When I did this the audible and visual warnings stopped; the whole time 3 green stayed illuminated. We continued a climb in VFR conditions to 9;000 FT to get above turbulence and requested a hold over the VOR with Center. Here we trouble shot the gear problem by reducing the power levers below 89%; extending flaps beyond 17 degrees and set the GPWS/TAWS to 50 FT and received no indications that the gear was not down and locked. The whole time the 3 green landing lights remained illuminated. While in the hold over the VOR the CDI needle failed on the First Officer's side. I had the First Officer continue to fly the hold using the RMI needles on his GPWS/TAWS. Keeping in mind that we were holding in VFR conditions we briefed the visual approach to 30; then when we went to get updated winds from the local ASOS the ASOS had failed. We contacted Operations and had them relay the weather to us via the phone. The Fire Department rolled the fire truck for us for our landing and as we flew overhead we had them visually check that all 3 gears appeared down. We requested they stand by but did not declare an emergency. We landed without incident and taxied back to the ramp where we unloaded out passengers. As a new Captain I tried to take my time in the hold and troubleshoot as much as I could beyond the checklist. Once we received permission from Maintenance and Dispatch to return we landed without incident.