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I am having the same problem with my 742 also just on the passenger side ...Your splines are probaly not aligned with each other.Good luck because I am having a heck of a time getting them to align.

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I had a similar problem years ago with a clucth type posi, I ended up sliding the axle in as far as I could get it and then used a long pry bar between the axle studs to turn and align the posi plates and side gears, turn it slowly and push in while turning it I did have to lock the other axle up with a longer pry bar hitting the ground so it wouldn't turn at the same time