Got it fixed!

Just do a trace as usual to see if the player has ladder in front. If trace finds ladder, go as usual. Then trace down for the same thing. If a block with the ladder flag set exists below the player, make him grab the ladder by changing his z position along with reqd animations for ladder grabbing. after the anim's completed, set movement_mode = 1 for ladder movement...

my home internet broke down. Im browsing from a cafe. So I dont have the file right now. Will post as soon as possible....