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Do you have the trans resting on the output shaft? That would probably bind everything up.




this first , the shaft must be free , having that rag wadded up underneath it is an issue probably.

Second looking at your picture of the front drum in the sunshell it doesn't look like it's seated far enough to me ?

What do you have for thrust washer, etc between the mainshaft and the input shaft ? , input shaft and the front drum ?