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This is the situation that seems to be a problem. As I noted, sometimes I've had to grind to get enough clearance to get a smooth engagement.

I have only had this be an issue on the 67 and newer trans (with the long shoulder bolt by the reverse switch) In this situation I machine .010" off the shoulder bolt which gives you an extra .005" clearance to move the side cover up. I only do this when both A and B 1/2 shift lever assemblies have been tried.
Dan



what do you mean by A and B shift lever assemblies?

I finally got the gasket today so its just a matter of doing the deed now (not looking forward to it)